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HomeMy WebLinkAboutAgenda Packet - 2009-04-27Sa periNi¢Nd ¢ht's Program, Services 0 amd Slaiffft&2 Recomatemdalf"OMS for 2009.10 Q Lake Oswego School District Superintendent's Program, Services and Staffing Recommendations for 2009-2010 Context The district is heading into a very challenging set of economic conditions, the magnitude of which the district has never faced. As our strategic planning process has progressed over several months, the economic situation has worsened dramatically, and the district is expecting significant reductions in state funding for the next biennium (2009-11). Given the anticipated impact of this economic crisis, it is important that we begin making substantial changes while shaping a vision of what our school district's programs and services should be, both in the context of significantly reduced resources, and our mission and core values: • We will continue to plan strategically, exercise considered judgment, strive to ensure the vitality of our programs, and focus on what matters — the education, safety and well being of our children. • While we cannot predict the extent of revenue reductions through the next biennium, we must be prepared to make a multitude of program and staffing decisions once funding levels are determined by the legislature and governor. • The district had hoped to focus on incremental change for the 2009-10 school year, using tactical planning and zero -based budgeting to preserve as many positions, programs, and services as possible. • Given the worsening economic realities, it is looking more necessary to begin some measure of transformational change for the 2009-10 school year. • Now the district appears to need to focus on some transformational change for next year, adapting schedules, programs, and services to fit the economic conditions. Guiding Assumptions • The programs and services in the district are all part of one large cohesive system, requiring all program and services decisions to be made in relation to the overall whole rather than as isolated choices. • The district will reorganize programs from the bottom up, first establishing the instructional conditions necessary to provide the programs and services determined to be most essential. • The district will continue striving to do an outstanding job of providing the core academic program at both the elementary and secondary levels, including the fundamental academic skills of reading, writing, and math. • Once the district establishes the personnel required to offer the programs and services determined to be most essential, it will proceed to design the rest of the instructional program within the resource constraints. • The district will seek to develop multiple and varied strategies to continue to provide as much of our elective and specialist -delivered instructional programs as possible. • Feedback and perspective from staff and parents will be sought and will be essential to making the best possible decisions. On April 9 Governor Kulongoski recommended that school districts prepare their next year's budgets assuming a significantly reduced state funding commitment which creates the two funding gap scenarios characterized below. �teundi"tLeelScenarioSfor`Nextear y x:` ";BestuCase' ¢ ,' ` abWor_se Laser Sample Lake Oswego Funding Gap Strategies $7.4 Million $10 Million Initial Strategies for Reducing the Gap Foundation Fundraising $ 1,300,000 $ 1,300,000 Employee Cost of Living Freeze to Date $ 1,000,000 $ 900,000 Central Management and Support Staff $ 205,000 $ 205,000 Classified Building Support Staff $ 110,000 $ 220,000 Classified Maintenance/Operations $ 240,000 $ 710,000 Schools and Central Service Allocation $ 635,000 $ 635,000 New Textbook Purchase Deferral $ 350,000 $ 350,000 Special Services Reorganization $ 280,000 $ 280,000 Fee Increases $ 80,000 $ 100,000 Cash Carryover (half for next year) $ 1,500,000 $ 1,500,000 Total Savings $ 5,700,000 $ 6,200,000 Remaining Ga $ 1,700,000 $ 3,800,000 Number of Teaching Positions in Jeopardy 24 54 4r7/2009�^�J24�99, 10:39:02 AM9: W4 One of the great strengths of our community and our district is our shared belief in the importance of working together, supporting each other and being proactive in our efforts to best realize our core mission and values. Much has already been done to begin addressing the economic challenges the district is facing. The Lake Oswego community has supported us by passing the local option and has also gone over the $1 million mark in Foundation fundraising. District teachers have voted to postpone their contracted cost of living increase to help save teaching positions and preserve program for students. Administrators, managing directors, supervisors, and confidential employees are also supporting a cost of living increase freeze. And classified employees are in the initial stages of considering possible contract changes for next year. There is so much to be positive about in Lake Oswego, and we have always summoned the will, commitment, and resolve that it takes to overcome adversity. However, despite our strong resilience, it is becoming more evident each week that optimism about the level of state funding for the next biennium is steadily diminishing. As portrayed in the previous chart, the district is preparing to make program, services, and staffing decisions with significantly reduced resources ranging from a funding gap of $7.4 million to $10 million for next year. We are now approaching the problem considering an array of possibilities framed between two scenarios. Best and Worst Case Scenarios for 2009-2010 1. Our best case level of state funding now appears to create a $7.4 million funding gap for Lake Oswego. The district could manage this reduction in funding with a multitude of painful staffing, program, and service reductions. However, this reduced level of funding could also require the district to make major organizational structural changes, such as adjusting secondary school schedules. 2. If state education funding declines to the $5.4 billion range for the next biennium, creating a $10 million funding gap for Lake Oswego next year, the district will have to consider enacting major structural changes in school schedules, program offerings, and organization for instruction. Reduction Planning Strategies for 2009-2010 1. The district will determine a first -to -be -eliminated number of non -teaching staff positions in management, operational, and classified support staff areas. These positions are almost certain to be reduced in hours or eliminated in either of the two scenarios. 2. The district will determine a zero -based funding hierarchy of teacher -provided course and service offerings designated as either First Tier Essential Staffing or Second Tier Essential Staffing. 3. The district will fund all First Tier Essential Staffing positions at a teacher:student ratio consistent with the economic reality once the state determines the level of state funding for the next biennium. We anticipate that the state legislature will make its funding determination shortly after the state revenue forecast is released on May 15. It is also important to note that if state funding declines to the extreme range of what we consider to be our worst case scenario, the district could be in a position of having to consider eliminating or reducing program and service offerings that we are considering to be Tier One Essential. 4. From its Second Tier Essential Staffing category, the district will strive to offer those programs and services that it can fund, taking into consideration that essential administrative, management, and classified support staff positions must also be funded for the district to operate effectively. 5. If the district must meet the challenges of reworking and reorganizing its programs and services in a worst case funding scenario, further reductions in non -teaching staff positions in management, operational and support staff areas will take place. These reductions will most likely take the form of position eliminations, reduction in hours, and reduction in length of contracts. Eoonomic Realities and alP All the programs and services provided by our schools are very valuable and considered essential for providing an outstanding, comprehensive educational program However, given the economic realities we are facing, the district will not be able to fund all of the programs and services it is currently providing. To move forward, we must accept the reality that we cannot control the state's funding choices, and although it is wrong to underfund education, some ways of doing the wrong thing are much better than others. Our challenge is not to acquiesce to the problem, but to move forward with an assertive spirit, making the best possible choices given the economic circumstances. 2 The district's instructional program and services recommendations are based on our longstanding commitment to providing high-quality instruction in a comprehensive educational program Instructional Program Commitments Knowing that it is critical for the district to be extremely well managed given the challenges and changes ahead of us, we are making every reasonable effort to reduce costs that do not directly affect the instructional program. Our challenge is to find the best possible balance of spending reductions that allow us to provide the most value for the available resources. To do so, the district will be guided by the following commitments: • The district remains committed to providing high-quality program offerings in core academics, including English, math, science, social studies and world languages. • Reading, writing, and math are essential college preparatory and lifetime skill abilities which must continue to be a fundamental student performance strength of the district. • In addition to core academics, the district is committed to providing high quality program offerings in the visual and performing arts, as well as in competitive athletics and student performance activities. • Although the district's elementary, middle level, and high school instructional programs are all focused on accomplishing similar academic and student development goals, the essential nature of the instructional program at each level is unique and must be recognized and valued as such. �' ltii "ti -Ji '•Rn,Y^�%rH":3,��Fer `E i:�"�-•v"`�,� Mm .i3'�k-tti�lai�, e!• � -'- c.iuii, : iu.Y F�-'�t'TM � �.��.1 WIN In$0Wic �onaf`,P , .� rams - lair room;5taffin -Ratios g, ahssr Staffi Elementary Program All nine of the district's elementary schools have been rated exceptional by the state for the past two years, and each provides a range of outstanding program offerings, including classroom skill instruction in reading, writing, and math, as well as instruction in science, social studies, health, and art. The district is also committed to offering expert instruction by teaching specialists in music and physical education. These offerings, combined with principal leadership, guidance counseling, special services, and talented and gifted services, all contribute mightily to the success of our elementary schools. First Tier Essential Staffing Recommendations The district's strongest commitment at all levels is to provide outstanding instruction in the fundamental academic skill areas of reading, writing, and math. State tests in reading and math at the elementary schools are administered in grades 3-6. State tests in writing are administered in grade 4 and state tests in science are administered in grade 5. The classroom teacher is the most essential elementary school staffing position. The number of elementary classroom teachers for the 2009-10 school year will be established considering student enrollment, the most acceptable teacher:student ratio given the economic constraints, and the amount of funding available for other elementary program offerings. A second group of essential elementary staffing positions are the half-time reading and math teachers, at each elementary school, as well as ELL teachers who serve students of all ages. These teachers provide supplemental basic skill instruction to students who are most in need of small group direct instruction. Second Tier Essential Staffing Recommendations (order of list does not imply rank of importance) The district is also committed to providing highly valued instructional programs and guidance services taught and provided by teaching and counseling specialists. • The district will strive to fund teaching specialist positions in music and physical education within the limits of available resources. It is also recommended that if the economic constraints force reduction in specialists' time, it is better to reduce specialist time in both music and physical education rather than eliminate one of the programs to better fund specialists in the other program. • Counseling services are very important to the emotional, psychological and developmental wellbeing of our students. It is recommended that these services continue to be provided in the most beneficial and cost-effective service delivery model. Middle Level Both the district's middle schools have been rated exceptional by the state for the past two years, and both have a strong academic program. They also provide course offerings in physical education, health and technology, as well as the visual and performing arts. Both schools have very similar programs with some differences in how they organize for instruction. The middle level schedule is a seven period instructional day. Unlike the high school schedule, which allows different starting and ending times for individual students, middle level students must be enrolled in classes for each of those seven periods. Thus, if the current schedule remains in place for next year, any reduction in staffing costs which would occur from reducing program offerings and raising class sizes will be somewhat limited. If the district chooses to reconfigure the schedule, it will be because in the emerging economic context, the current schedule is determined to provide more disadvantages than advantages. Because the middle level schedule must engage and accommodate all students every period of the day without late arrivals, early releases, or study halls, the district must consider changing the number of periods and the configuration of the middle level schedule if the financial conditions require a significant reduction in middle level staffing. The reconfiguration of the middle level schedule to allow concentrated time frames for core academics and flexibility for elective offerings, as well as the sharing of staffing with the high schools and between the middle schools, could produce some significant instructional gains with reduced costs. If the middle level schedule is reconfigured for the 2009-10 school year to better fit the economic conditions the district must adjust to, it will also require a reworking of what course offerings will be required and what offerings will be designated as electives. First Tier Essential Staffing Recommendations The district's strongest commitment at all levels is to provide outstanding instruction in the fundamental academic skill areas of reading, writing, and math. • The core academic teacher in the state -required classes is the most essential middle school staffing position. The number of middle level core academic classroom teachers for the 2009-10 school year will be established considering student enrollment and the most acceptable teacher. student ratio given the economic constraints, as well as funding available for other middle level program offerings. Core academic state -required classes at the middle level are English, math, science, and social studies. • Teacher. student ratios in the core academic classes should be differentiated based on state and district academic skill proficiency requirements as well as instructional facility limitations. The district has specific mandatory writing expectations for middle level English teachers, and the state requires skill proficiency testing in reading, math, and writing at the seventh grade level, and reading, math, and science at the eighth grade level. • The district will fund state -required health and physical education programs with a teacher: student ratio appropriate for learning and safety expectations, within the limits of available resources. • The district is also committed to providing a level of staffing for the middle level programs in world languages and visual and performing arts. The number of course offerings in these essential curriculum areas, as well as teacherstudent ratios, will be determined in relation to the available resources and student demand. Second Tier Essential Staffing Recommendations (order of list does not imply rank of importance) The district is also committed to providing highly valued elective offerings and guidance services taught and provided by teaching and counseling specialists. • The district will strive to fund as many elective offerings as possible within the limits of available resources. • Counseling services are very important to the emotional, psychological and developmental well being of our students. It is recommended that these services continue to be provided in the most beneficial and cost- effective service delivery model. S1 High School Both of the district's high schools have been rated exceptional by the state for the past two years, and both schools have strong academic programs. They also provide a wide range of course offerings, including Honors and Advanced Placement courses and electives in core academic disciplines as well as band, orchestra, choir, drama, art, business, home economics, and physical education. Both high schools have very similar programs with some elective offerings unique to one school or the other. The high schools also provide a wide range of competitive athletics and student performance activities. The high schools organize for instruction with an eight -period rollover block schedule, allowing students to start and end their academic day at different tunes as well as to take up to eight classes per semester. This schedule was designed to give students access to a wide range of course offerings. Given the economic realities the district is facing, it is highly likely that a significant reduction in elective course offerings will take place in a worst case funding scenario. If elective offerings are significantly decreased, the district will need to consider some reconfiguration of the block schedule along the lines of a six or seven period day. If reconfiguration of the schedules for the high schools and the middle schools is undertaken for next year, it will be important to adjust starting and ending times to accommodate secondary school teachers being able to teach in more than one school. For example, the schedule should allow for a middle school teacher to be able to teach at both middle schools or at a middle school and at a high school. Similarly, a high school teacher should be able to teach at both high schools or at the high school as well as at a middle school. First Tier Essential Staffing Recommendations The district's strongest commitment at all levels is to provide outstanding instruction in the fundamental academic skill areas of reading, writing, and math. The core academic teacher in the state -required classes is the most essential high school staffing position. The number of high school core academic classroom teachers for the 2009-10 school year will be established considering student enrollment and the most acceptable teacher. student ratio given the economic constraints, as well as funding available for other high school program offerings. Core academic state -required classes at the high school level are in English, math, science, social studies, and world languages. Staffing for other state -required courses includes health and physical education as well as at least one credit in fine arts and 6.5 credits in other electives. Teacher. student ratios in the core academic classes should be differentiated based on state and district academic skill proficiency requirements as well as instructional facility limitations. The district has specific mandatory writing expectations for high school English teachers, and the state requires skill proficiency testing in reading, writing, math, and science at tenth grade. The district will fund state -required health and physical education courses with a teachenstudent ratio appropriate for learning and safety expectations, within the limits of available resources. The district is also committed to providing a level of staffing for the high school programs in world languages and visual and performing arts. The number of course offerings in these essential curriculum areas, as well as teacher. student ratios, will be determined in relation to the available resources and student demand. Second Tier Essential Staffing Recommendations (order of list does not imply rank of importance) The district is also committed to providing highly valued elective offerings and guidance services taught and provided by teaching and counseling specialists. • The district will strive to fund as many elective offerings as possible within the limits of available resources. • Counseling services are very important to the emotional, psychological and developmental well being of our students. It is recommended that these services continue to be provided in the most beneficial and cost- effective service delivery model. Offer _r rams�and Serv�ons� ;` T':> , > � Special Services The district's special services budget is somewhat unique in the district's operating budget because Federal guidelines require that the district continue to fund special services, essentially maintaining its funding effort from the previous year. The characterization of maintenance of effort is often referred to by the acronym MOE. Thus, the district is limited in how much special education staffing can be reduced in any given year. That said, because no district programs or operations exist in isolation, and all must share a fair and reasonable responsibility for controlling costs and using resources wisely, the following reductions are being recommended: • Reduce 1.0 FTE at Lake Oswego High School and set Learning Center caseloads at 1:28 at both Lake Oswego High School and Lakeridge High School. • Reduce 3.0 FTE which can be realized by reorganizing caseloads in the following service areas: Elementary and Junior High Learning Centers, Speech and Language, Psychology, Classified Support and Motor Team It is also important to note that the district's Special Services program is going to benefit from federal stimulus funding which will help us to expand our continuum of services by opening the K-3 and 3-6 Access classrooms in the 2009-10 school year. These program improvements are structured to provide the most value for the available resources. These recommended changes allow the district to fulfill maintenance of effort requirements, control costs to help meet district financial goals, and continue improving continuum of service options in Special Education. TAG The district provides talented and gifted services focused on meeting the needs of TAG -identified students through written plans, as well as differentiated instruction, ability grouping, academic challenge options, and advanced course selection. State law requires TAG -identified students to be taught at their level and rate of learning. To continue meeting state and district expectations for TAG students, the district does not recommend significant reductions in FTE which currently serves TAG student needs. Some staffing reductions and/or program reorganization could be necessary depending on the level of the decrease in state funding for next year. The primary instruction provided for TAG students is delivered by the regular classroom teacher. In the elementary schools, TAG specialists assist the regular classroom teacher in developing specialized instruction and provide direct instruction for small groups of TAG students. At the middle level, the district provides some staffing to help in the development of individualized plans and specialized instruction. The middle level program also has advanced courses and the Academic Merit program, which help meet the needs of TAG students. At the high schools, the wide range of college preparatory, honors, and advanced placement courses are the primary means of meeting TAG students' needs. • Elementary: Maintain the current level of TAG support staffing unless a worst case state funding scenario requires the district to reevaluate resources and delivery models for TAG services. • Middle Level: Provide some reasonable level of staffing for TAG support and to re-evaluate the differences in the TAG service model at the two middle schools. The most efficient and effective use of resources in the anticipated economic context may require the district to have the same TAG service support model at both middle schools. • High School: Maintain the current level of TAG support from the counseling staffs at both high schools. Secondary School Athletic Program Secondary schools competitive athletics is one of the three major components of the district's comprehensive educational program. Opportunities for athletic participation are extensive and are significantly funded by athletic participation fees. Current fees for each high school student to participate in a single sport are $250, and the district charges $125 for each middle school student to participate in a single sport. Some sports are much more costly to the district than other sports. Football, for example, with its large number of participants and 2 large number of spectators, makes money and helps to subsidize teams with relatively few athletes and small numbers of spectators. There are over 1,000 individual sport participations at each high school each year, as well as extensive competitive sports participation at the middle school. The district believes it receives high value in return for what is invested in the district's athletic program. Like the district's after-school activities programs in band, orchestra, choir, and drama, competitive athletics provides unique learning and human development opportunities that cannot be experienced in the academic classroom. Realizing that a significant amount of fundraising already takes place to support the district's competitive athletic programs, the district should make every effort to continue providing high value and reduced costs for competitive athletics. High School Competitive Athletics Recommendation. • Increase participation fees from $250 per athlete, per sport to $300 per athlete, per sport. • Change all non-OSAA sports to club status which would mean that lacrosse, water polo, siding, snowboarding, equestrian, and crew would be funded through a club in cooperation with Community School. Middle School Competitive Athletics Recommendation. • Increase participation fees from $125 per athlete, per sport to $150 per athlete, per sport. • The district should also consider changing the operation of some middle level sports into an intramural -like program with volunteer coaches and significantly reduced fees. This recommendation is made with the assumption that the more competitive program opportunities in basketball and volleyball would continue to be made available through a traveling team organization in cooperation with community schools. After -School and Before -School Activities The district provides pay -for -participation band and strings offerings for elementary school students, but does not charge fees for participation in secondary school music and drama performances. The district should once again evaluate its fee structures for activities and reassess the level of fees for elementary band and strings as well as the assumption that secondary school performance productions generate enough revenue to cover the cost of performances and teacher stipends for extra duty. Central Administration and Support Services Central budget service areas include business services, human resources, special services, curriculum and instruction, and the office of the superintendent, including communications and marketing, as well as school board and legal services. Central office management services were reduced to essential levels some time ago and the district has recently been reducing their allocations while increasing building allocations. Our financial situation, however, calls for us to make as many cost-saving reductions as possible while still retaining the district's ability to function effectively. • By mutual agreement, the new director of human resources should begin service to the district under a .9 FTE contract for her first year. The offer of a reduced administrative contract should also be offered to other administrators. $12,000 • The director of technical and engineering services position should begin focusing on SB 1149 and E -rate projects which are reimbursable and therefore will cover his compensation for next year. $100,000 • The central office secretarial support staff should be reduced by 1.0 FTE and further changes should be considered if the funding situation warrants additional reductions. $45,000 • Central administration allocations for supplies, equipment, and services that support district - wide operations also should be reduced. $23,000 • The district should curtail professional development activities and discontinue emphasis on engaging outside consultants for those activities. $35,000 • The district should focus on realizing more energy savings by increasing efforts to furish high - return energy conservation projects, and increasing efforts to reduce day-to-day energy usage. These measures should mitigate the impact of energy costs inflation. 7 Building Administration and Support Services Building administrative and support staff positions are currently staffed at essential service levels. That said, the district must consider choices to reduce administrative and support staff costs at the building level while still retaining the ability for the schools to be functional. • If the economic circumstances require the elimination of a building administrator, the reduction should take plate at the high school level with a reorganization of secondary school administrative role relationships among the four secondary schools. • If required by economic circumstances, a number of building level secretaries and educational assistants should have their hours and/or length of contract reduced, producing a savings of between $110,000 and $220,000 depending on the severity of the district's funding gap. • If the economic circumstances require the reconfiguration of the district's organization for instruction resulting in the closing of an elementary school, administrative secretarial and educational assistant positions would be eliminated. • Each year the district provides schools with a non -staffing building allocation to cover expenditures such as supplies, equipment, and services at the school level. The recommendation is to reduce building allocations by 10% for the 2009-10 school year. $125,000 Human Resources The district has already implemented the following strategies to guide the district staffing process for the 2009- 10 school year: • Eliminate classified substitutes with the exception of Food Service employees, Special Education Assistants and Extended Day Providers. • Any staff position that is vacated will be reviewed to see if the position can be eliminated, reconfigured or filled by an existing staff member. • Hiring practices will ensure that staffing decisions are consistent with the district's commitment to provide the most value for the available resource. Computer Network Services Computer technology has become an indispensable tool for students and teachers in the district. In addition, all of the district's management processes are dependent on computer-based systems. The Computer Network Services Department was reduced to essential service level in 2003-2004. The department has been focusing on providing the most critical support services since that time. Because of the critical nature of computer technology services to the instructional program and management operations of the district, no further reduction in these services is recommended at this time unless a worst case state funding scenario requires the district to reduce computer support below essential service levels. Facility Operations The district has systematically been reducing the size of its management and operational capabilities over a period of years. Our facilities operations including central maintenance services, grounds, as well as building engineer and custodial services are currently operating at what the district considers to be essential service levels. The following recommendation will require the district to operate at survival service levels and will require significant changes in expectations and role relationships throughout the district. • Significantly curtail targeted maintenance activities. $500,000 • Reduce 1.0 FTE from its central service maintenance staff. $60,000 • Reduce facility operations FTE in a range of $60,000-$530,000 depending on the severity of the district's financial dilemma. $60,000-$530,000 • Reassign the equivalent of 1.0 FTE to Senate Bill 1149 projects, which effectively covers the cost of funding one position from the district's operating budget. $65,000 • Eliminate the landscape maintenance contracts for the two high schools. $20,000 • Develop a plan to redeploy staff to cover essential needs when someone is absent and therefore significantly reduce the cost of substitutes. $35,000 Transportation Transportation services are contracted through First Student. State law requires transportation for elementary students who reside at least 1 mile from school and for secondary students who reside at least 1.5 miles from school. The state reimburses the district for 70% of the cost of transportation services. Evaluate bus routes to determine if some routes that currently provide transportation beyond the level of service required by the state can and should be eliminated if student safety concerns are not a factor. Food Services The financial goal for the district's food services department is to operate in a self-supporting or break-even environment. However, this goal does not take precedence over the nutrition needs of our students. The district receives little support from federal subsidies given the socio-economic status of our population, which means that our efforts to operate food services as a cost -neutral enterprise rely largely on student fees. • The district will continue to review and adjust food services operations and fees as needed. Community School The Community School was created during a period of economic downsizing as a vehicle for providing additional opportunities for students as the district was forced to reduce programs and services. The district's Community School is designed to provide fee-based academic, art, and athletic enrichment programs for students, and to operate in a self-supporting or break-even environment. Community School programs continue to grow in terms of breadth of offerings and student participation. • Review Community School program offerings, staffing, and fee structure to ensure that it is self-sustaining without significantly increasing fees to activities which directly support existing school district programs. • Community school leadership should focus on entrepreneurial strategies that generate revenue to support the expansion of its programs and services. Swimming Pool A valuable resource for students and the community, the district swimming pool currently operates at a significant deficit. The district should develop a plan for reducing the pool's operating deficit by 50%, which could include increasing fees, reducing operational hours, developing new pay -for -participation programs, and closing for extended time frames during the year. The district should explore avenues to partner with the city and/or swim clubs to help sustain the cost of operating the pool. Extended Day Program The Extended Day Program provides a range of programs for students in elementary school and younger, including before and after school care, summer programs, pre -k and extended day kindergarten. The Extended Day Program is designed to operate in a self-supporting or break-even environment. • The Extended Day Program will continue to expand program offerings. • The Extended Day Program should review program fees and propose an increase if needed to ensure cost - neutral operation. Volunteer Support Support from parent volunteers has always been one of the great assets of our schools and is highly valued by the district. While some needs can be met through the generous support from parents, other roles require substantial training and a level of sustainable, routine commitment that may be beyond the scope of volunteer efforts. The district will need to assess where expanded volunteer opportunities could work effectively, taking into consideration contractual and confidentiality issues, and whether the roles in question can be realistically and routinely performed by individuals who are not employees. TOTAL INITIAL REDUCTIONS .0 ScAooe Board perspects"Vesp Morities aftd Goaes Lake Oswego School District School Board Priorities 2008-09 School Year Each year, the 5chool Board establishes priorities that provide a framework for the district's continuous improvement efforts. The 2008-09 school year will be characterized by an ambitious agenda focused on program study, development, and Implementation,, as well as careful strategic and financial planning. Economic uncertainties and declining enrollment will continue to present challenges, and the communication of information regarding renewal of the district's local option levy, marketing efforts to attract tuition students, and active support of Foundation fundraising efforts will all be key priorities for sustaining financial stability. While other projects will be undertaken and other concerns will arise that w111 require board and district attention, the following priorities will drive the school board's agenda this year and will be the primary focus of district administrative efforts. • Strategic Planning - continue planning to address the challenges of high performance expectations, uncertain resources, proactive marketing, and declining enrollment - continue strengthening programs in academics, the visual and performing arts, and athletics to provide the most value for the available resources • Financial Oversight - develop clear and accurate information materials for the local option renewal vote scheduled for November 2008 - continue to focus on the district's short-term and long-term economic stability, vitality, and sustainability • Policy Development - complete the review and updating of all district policies and regulations in consultation with the Oregon School Boards Association - ensure that the unique nature of the district's culture and core values guide the development of all district policies • Local Option Renewal - develop communication plan to inform the Lake Oswego community about the Lake Oswego School Board's local option ballot measure - develop multiple avenues and opportunities for direct School Board communication with the Lake Oswego community concerning the local option vote School District Foundation - continue actively supporting Foundation fundraising efforts in collaboration with the Foundation Board - continue actively participating in all Foundation events and fundraising activities School District Relationships - continue working to develop a school district culture where trust, caring, and respect for the voice, worth, and dignity of all individuals are clearly evident - continue involving parents in program improvement activities, including advisory committees, ad hoc committees, Coordinating Council - continue involving parents in learning partnerships like Raising MindsTM, Scholars' AllianceTM, and Community School learning enrichment opportunities Community Partnerships - continue participating with the Chamber of Commerce's Fusion partners by working collaboratively in the best interest of the Lake Oswego community Instructional Program - continue implementation of the English/LA curriculum K-6 consistent with new state graduation requirements - implement and assess the revised health, physical education and English Language Learners curriculum - renew and adopt science curriculum K-12 in conjunction with Mindful Teaching conceptual learning strategies Program Development - continue Talented and Gifted program implementation and development of middle level Academic Merit program - implement new Special Services program delivery model - continue developing district K-12 writing program and implement new high school math options Instructional Program Study - continue developing program opportunities for preschool, kindergarten, full day K, and extended day options - study and recommend options for world language K-8, including language immersion opportunities - continue developing Community School academic enrichment and summer school program options Professional Development and Improvement - continue evolving and strengthening professional development efforts, including Principles of Learning, Mindful Teaching, Raising MindsTM, Academic Merit Program, and Positive Behavior Supports Leadership — continue developing and implementing district and school- based Continuous Improvement Plans — continue making learning and instruction the heart of improvement and professional development efforts Management - continue proactive hiring practices and focus support efforts on mentoring for beginning teachers - implement Grade Book program for secondary teachers and continue implementation of OAKS at all levels - continue implementing respectful culture recommendations Marketing - continue district marketing efforts, with emphasis on website development, print advertising, and Listsery - develop consistent messages that focus on key attributes of Lake Oswego schools and programs School Board Communications -continue to develop avenues for direct School Board voice, dialogue, and interaction with the public it represents Approved July 15, 2008 by the Lake Uswego School boarcl Deborah Lopardo, Chair ♦ Rich Akerman ♦ Linda Brown ♦ Curt Sheinin ♦ Bill Swindells Lake Oswego School District QStrategic Improvement Goals 2008-09 School Year 'District Mission This district is committed to providing each student with a strong academic program in a safe and supportive educational environment. Our schools strive to foster a love of learning, to instill a sense of civic and social responsibility, and to develop the intellectual, physical and social skills necessary for life-long personal achievement. District Perspective Each year, the district establishes goals that provide direction for the district's continuous improvement efforts. The 2008-09 school year will be characterized by an agenda that builds upon district strengths in instruction, program, and parent involvement. In addition, the national and state economic picture and its implications for school funding, our marketing efforts, and Foundation support will require careful strategic and financial planning to ensure the long-term vitality of the district. The following goals will be the primary focus of district continuous improvement efforts, the development of specific strategies, and the evaluation of district performance. District Continuous Improvement .. 1. Learning and Instruction Nothing the district undertakes is more important than focusing on what matters most: the continuous learning and wellbeing of our students. To best meet the educational needs of our students, the district must always be engaged in the professional development of our staff and the continuous improvement of our programs and services. • The district will continue its professional development efforts focused on the principles of learning, mindful teaching, differentiation of instruction, thinking strategies, problem -solving and the nature of knowledge. • The district will concentrate its elementary language arts curriculum improvement efforts on writing. • The district will renew and adopt the K-12 science curriculum, including cross -discipline concept development. • The district will establish new focus for the continuous improvement of Special Services. • The district will complete the third phase of the district's development of a Talented and Gifted Improvement Plan, including focus on the middle level Academic Merit Program. • The district will study and develop recommendations for world language options for K-8, including language immersion opportunities. 2. Culture and Participation The district's culture must be anchored in our belief in deep purpose, unwavering commitment, and sound perspective. To be successful, the district must engage the collective efforts of all stakeholders in creating the best possible conditions for the educational wellbeing of our children. • Continue the development and enhancement of district communications that emphasize timely, useful, complete, and consistent information easily accessible by students, parents, employees, the media, and the greater community. • Continue building relationships with parents through communication, involvement, and partnering, including Raising Minds, Scholars' Alliance, our advisory committees and Coordinating Council. • Begin piloting online grade access for possible implementation at the secondary level at the beginning of next year. 3. Leadership and Management Focused leadership and sound management will always be critical to the ongoing success of the district. • Continue developing effective means and processes for engaging the leadership skills and abilities of all stakeholders, including the Foundation Board, ad hoc committees, and parent clubs. • Continue focusing management improvement efforts on planning, organization, marketing, follow through, time management, and effective communication consistent with district vision, values, and premises. • Continue focusing school improvement plans on increasing academic achievement, building respectful school cultures, expanding implementation of PBS, and creating conditions for staff participation in leadership decisions. Approved on November 3, 2008 by the Lake Oswego School Board Deborah Lopardo, Chair ♦ Rich Akerman ♦ Linda Brown ♦ Curt Sheinin ♦ Bill Swindells Board Chair Comments for Joint LOSD/City Meeting 04/27/09 Dynamic institutions that contribute to the quality of life are one of the hallmarks of a thriving community. Those of us here this evening represent two of those institutions — there can be no doubt that the school district and the city have enormous impact on the vitality and livability of Lake Oswego. For the past few years, we have been very fortunate that the conditions have been in place to create schools and educational programs that are arguably stronger than they've ever been: • We have had stronger and more stable funding from the state, outstanding support from our community, and inspiring leadership, teachers, and staff who do great things with our kids every day. The results speak for themselves. Here are just a few: • All 13 of our schools are rated exceptional for the second year in a row — statewide, this is an unprecedented achievement for a district of our size or larger • Over 95% of our elementary students meet or exceed state math and reading standards • This year's senior class boasts 12 National Merit Finalists • 94% of graduates go on to college In short, the conditions we've had recently have allowed us to focus on what's most important: hiring more teachers and lowering class sizes, providing more electives and breadth of opportunity, continuously improving the quality of instruction. This is how it should always be. But it is clear now that that will not be the case. It is painful — and disturbing — to consider the decisions we will have to make to address the massive funding shortfalls heading our way. This is a situation that will affect the livability of our community. Everyone is invested in our schools — from the families with small children, to the empty -nesters relying on the value of their real estate, to the local businesses that will be impacted if the largest employer in Lake Oswego eliminates jobs. But the greatest risk is to our community's children. The economic challenges the school district is facing are truly unprecedented. We have no choice but to try to meet these challenges head-on, because education doesn't wait. Our kids are here now, and an 8 -year-old only gets one shot at third grade. But we will not be able to navigate these challenges without the support of the entire community. In recent years, the city and school district have recognized the importance of having a productive, positive, and mutually beneficial partnership. We have identified shared direction and vision, complemented each other's strengths, and creatively employed limited resources. The school district is greatly appreciative of the support we have received from the city in the past, and we look forward to the opportunity to continue exploring the interests we have in common, and to expanding the possibilities that arise from collaborative efforts on behalf of our entire community. Deborah Lopardo Chair, Lake Oswego School Board stratolos"C A¢rgp¢ciiv¢s ev��aNicaiivN DEFECTS IN ORIGINAL DOCUMENT Dr. Bill Korach April 1, 2009 Instructional Program Strategic Planning Phases Funding Planning for the 2009-11 Biennium The district is pursuing all available options to increase funding for the next biennium. Goal. Secure resources to help fund district positions, programs, and services. • Local Option community commitment through the 2014-15 school year • Strategic marketing efforts working to increase enrollment • Education Foundation fundraising campaign underway • Contract discussions underway with all employee groups • District financial support discussions underway with City leadership The state is anticipating a $413 shortfall for the upcoming biennium.Given that the district receives 82% of its funding from the state, the extent of our financial challenges cannot be determined until the legislature acts to establish school funding. Phase I — Incremental Change Tactical planning for the 2009-10 school year Goal. Save as many positions, programs, and services as possible for next year. • Continue commitment to academics, visual and performing arts, and athletics • Begin narrowing program and service offerings through zero -based budgeting • Establish student performance expectations and differentiate class ratios and caseloads • Determine essential instructional program, as well as future program aspirations Although class sizes and caseloads are expected to increase, the district is anticipating relatively few structural changes. in school schedules and program delivery models for 2009-10. Phase II — Transformational Change Reorganization planning for the 2010-11 school year Goal: Begin adapting and restructuring programs and services to fit the economic conditions. • Re -envision program and service models to fit future objectives • Restructure school schedules and program delivery models • Redefine performance and continuous improvement expectations • Create conditions for employees' success and build from strength i �llthoue are unable to predict class sizes and caseloads for the 2010-11 school year, the district does`anticipate that major structural changes in school schedules and program delivery models are likely to occur for the 2010-11 school year. SuptPWming:2008-09:Instructional Program Svatogic Planning Ph—, Dr. Bill Korach Superintendent STRATEGIC PERSPECTIVES Lake Oswego School District November 17, 2008 Insightful strategic planning and actions have long been critical to the school district's well being and vitality. With the country's economic downturn moving deeper into a recession, we are working to prepare and position the district to most successfully face the challenges and uncertainties which lie ahead. For us to be successful, district leadership at all levels and in all roles must once again embrace the paradoxical challenge of accomplishing economically driven, although painful, results while providing uncompromisingly sensitive support to individuals who will be directly affected by the changes the district will have to make. The truth that is becoming clearer every day is that all of us are going to be impacted by this economic downturn. We have been confronted with several significant economic challenges over the past 20+ years, and despite having to embrace many painful realities, have always supported one another, sustained high levels of performance, and emerged successfully. Each time we have faced serious economic challenges, the context has been different, and thus our strategies have had to change to fit the context we were in. One thing that has not changed, however, has been our commitment to our core values. 1. Learning To be a school district where meaningful learning, for students and staff, is clearly the central purpose influencing decisions and actions. 2. Instruction To be a school district with a comprehensive vision of instruction including a variety of instructional approaches directly related to specific learning outcomes. 3. Participation To be a school district which values and encourages the voice, innovativeness and problem -solving ability of all of its stakeholders. 4. Culture To be a school district with a culture where trust, caring, and respect for the worth and dignity of all individuals are clearly evident. 5. Leadership To be a school district where the individual and collective leadership abilities of all stakeholders are engaged in accomplishing the district's mission. Once again, we are facing a situation that will require us to change some of our management strategies. Though the underfunding of education is always morally wrong, it is the pragmatic reality that we are heading into. While it is a given that there is no right way to do the wrong thing, our challenge is to be thoughtful, sensitive, focused, and strategic as we develop a course of action that will position the district to best serve the education of our students. Back to the Future. One of the paradoxes of effective strategic planning is that to look forward with vision and insight requires looking backwards to understand one's origins, accomplishments, and mistakes. Knowing one's history is important, but it is equally as important to understand that history does not really repeat itself as much as it rhymes with similar situations and contexts. Although there is much we can learn from the past, we must recognize that the district has changed significantly over the past 20+ years and that the context we are heading into is different from the economic challenges we have faced in the past. Supt-Planni¢g:2009-09:Rccessiou Plan Overview-Svatcgic Persil. An abbreviated history of the district's strategic encounters with adverse economic conditions should help to place our current economic challenges in a more meaningful context. The middle 1980s. With increasing enrollment, insufficient elementary school classroom space, serious deferred maintenance issues, and inadequate resources brought about by an economic downturn in the early -1980s, the district was facing many challenges. After an unsuccessful attempt to move the sixth graders into the junior high schools, as well as the development of trust and confidence issues, the School Board removed the superintendent and set a new course for the district. The late 1980s. The district staff and the community worked together to develop core values, to establish a new participatory management style, and to embrace a continuous improvement organizational philosophy. The community supported a significant tax base increase by a margin of over 60%, establishing a threshold of stable and adequate local funding for schools that was ultimately undone by the passage of Measure 5. The community approved an approximately $18 million facilities improvement bond that built Oak Creek Elementary School, renovated Lake Grove Elementary School and Forest Hills Elementary School, built new classroom wings at Uplands Elementary School and River Grove Elementary School, and added a music room and science laboratory classroom to Waluga Junior High School. November 1990. In November 1990, Ballot Measure 5 also passed, effectively shifting local control of school funding to state control. Lake Oswego went from a locally supported, high spending district with low class sizes and extensive program offerings to a state funded, average spending district with higher class sizes and reduced program offerings. The district had built an aggressive strategic plan in anticipation of the passage of Ballot Measure 5 and began enacting the plan the week after the measure passed. With the extraordinary efforts of staff and by engaging in extensive restructuring, not replacing retiring staff, and filling vacant positions with existing staff, the district was able to maintain high performance and retain the vast majority of its staff while downsizing its work force and building a cash balance to be spent over the difficult years to come. Changes included moving to the rollover block schedule at the high schools, creating blended classrooms at the elementary level, developing a community school, building a school foundation, and instituting participation fees. Late 1990s. In the late -1990s, the district faced another significant downturn in state funding, but had built cash reserves to help buffer the negative impact. The district continued to evolve and adapt its previous restructuring strategies, which included eliminating a class period from the middle level schedule. This did not tum out to be a good decision and was later reversed. Throughout the district, class sizes were increased and counseling positions were reduced. The city supported the district with a three-year serial levy that funded after-school athletics and activities programs. Additionally, the district passed a facilities and equipment bond to help address maintenance and technology needs. Athletic and music participation fees were significantly increased and coaching positions were eliminated. Early 2000s. It was in this time frame that the Lake Oswego community provided the district with an overwhelmingly positive demonstration of support by passing an $85 million facilities improve- ment bond. This supported the construction of a new Lake Oswego High School and the extensive remodeling and upgrading of Lakeridge High School, as well as infrastructure upgrades throughout the district and the addition of classrooms at Forest Hills Elementary School. Supt:Planning:2009-09:Recession Plan Overview -Strategic Persil. 2 In late 1999, the legislature had also approved giving school districts authority to raise a limited amount of local revenue to supplement state funding. District voters approved the fust local option levy in May, 2000, allowing the district to add staff and reduce class sizes for the first time in a decade. Relief was short-lived, however, because following 9/11, the economy once again took a significant downturn, and the district was again faced with serious economic challenges. The downsizing of administrative and support staff to essential service levels was followed by the reduction of 23.5 licensed teaching positions. Foundation fundraising of $1.5 million and the reduction of five days of the school year allowed the district to avoid much deeper cuts in staffing. It was during this time period that the district had to compensate for a $4 million shortfall in budgeted state school support, which was accomplished by using district reserves built during the strategic restructuring of the 1990s. Late 2000s. With an improved economy, renewal of the district's local option levy and several years of outstanding foundation fundraising, the district was able to add back numerous teaching and support staff positions, add program opportunities, and lower class sizes. Now, when the district has arguably never been stronger—with a range of exceptional programs, relatively low class sizes, outstanding student performance, and unparalleled state ratings—we are facing what appears to be an economic challenge of major proportions. The Lake Oswego community has just voted to renew the local option with an approval margin of approximately 57%, which will provide the district with significant supplemental local funding through the 2014-15 school year. However, we are anticipating the impact of the recession on state funding to be substantial, and it is hard to predict how foundation fundraising will fare in these challenging economic conditions. Leadership and Change. To successfully manage change in challenging times, it is imperative that the leadership mindset, assumptions, and strategies fit the context as well as the district's aspirations. During the downsizing process in the early 1990s, it was essential for the district to adopt a transformational leadership mindset because the district adopted significant restructuring transformations that had wide-ranging impact, while still maintaining high levels of performance. The outstanding leadership, commitment, and contributions of staff at all levels and in all roles allowed the district to accomplish those goals. Transformational Change. Continuous improvement through transformational leadership focused on structural, operational, instructional, and programmatic change. High school teachers adjusted to teaching an additional class in a 90 -minute rollover block schedule. Elementary teachers adjusted to teaching in blended classrooms. And middle level teachers made a concerted effort to try to adjust to a consolidated six -period day, although this change was ultimately deemed untenable and the seven -period day was restored when the local option levy was approved. Support staff, including administrators, directors, specialists, confidential and classified employees, adjusted to increasing expectations while assuming more or different responsibilities. All staff met the challenge of higher expectations with fewer colleagues and resources. Now, after years of restructuring, building programs, and evolving the most effective means of providing educational opportunities within the context of significant variations in resources, the majority of meaningful structural changes have been undertaken. Thus the district is not looking at its newest economic challenges with the same mindset, and employing restructuring strategies that were successful in the past. The current conditions still call for continuous improvement leadership while sensitively providing support for one another, but now the goal must be successfully achieving incremental change. Incremental Change. In our current economic context, continuous improvement will require insightful and supportive service leadership focused on sustaining gains and essentially building incrementally from what has previously been successful. Given the many changes the district has made in the past to be in the best possible position to cope with economic instability, it is time to Supt:P1anning2008-09:Recession Plan Overview-S=egic Persp. 3 seek small, meaningful, personalized improvements that when taken together will allow the district to continue making significant gains. Major structural and/or programmatic changes will most likely be limited to unique opportunities that offer major economic and/or instructional improvement. Our Leadership Advantage -The Power of Service Leadership. Service leadership is about human relations and creating the conditions for people's success. True service leadership is powerful—but power through people, not power over people. Service leadership, in this sense, is the commitment to support people and the ability to positively affect intentions, decisions, and actions. To be successful in the context the district is heading into, leadership at all levels and in all roles must be asserted thoughtfully and sensitively to foster 1. Resilience – Believing in our ability to overcome obstacles requires an acceptance of the realities we are facing, while summoning the will to prevail. 2. Insightfulness – Seeing with accurate perspective requires vision, imagination, purpose, and foresight. 3. Collaboration – Addressing problems together requires communication and cooperation, as well as consideration and mutual respect. 4. Spirit – Maintaining deep purpose commitment and motivation in the face of undeserved obstacles requires us to continue to be inspired by the desire to make a difference in the lives of others. Organizational Beliefs: What We Hold To Be True. We must never lose sight of the fact that our intangibles—our relationships and our people—are our greatest strength: intangibles characterized by positive spirit, extensive expertise, powerful caring, and deep purpose commitment. In the economic times we are entering, the following district beliefs guide our intentions, decisions, and actions. 1. Change structures and strategies to fit the conditions, but do not abandon core values or our fundamental belief in each other. 2. Seek to preserve organizational harmony by making painful, yet necessary, changes in our own way, providing the most value for the available resources. 3. Maintain organizational coherence through meaningful vision and purposeful strategies that people can count on year after year. 4. Stay focused on continuing to provide outstanding opportunities in our areas of core competence: academics, the arts, and athletics. 5. Be flexible within the boundaries of our district mission, values, beliefs, policies, and strategies. RESOURCE CONSERVATION RECOMMENDATION FOR IMMEDIATE IMPLEMENTATION Cost Control Recommendations. Because the district is heading into a very challenging set of economic conditions and is expecting reduced state funding for the next biennium as well as the current school year, the administration is requesting immediate Board approval of spending controls for the remainder of the 2008-09 school year. Assumptions 1. In our current budget some unexpended funds are designated for needs which are less important than future needs that may not be possible to meet due to the anticipated reduction in resources. 2. Conserving such funds now will allow the district to use them when resources are in shorter supply in the future. During the remainder of the 2008-09 school year, the administration is recommending to the School Board that the district be able to apply the following guidelines in an effort to conserve resources. SuptPlaming2008-09:Re sion Plan Overview -Strategic Persp. 4 1. All central service budgets will be monitored such that only essential spending will be permitted. Central services are those budgets which are controlled through the Central Office, and include areas like maintenance and operations, CNS, business services, human resources, curriculum and instruction, etc. The district will develop resource conservation criteria to be applied to central service budget expenditures. 2. Individual school building budgets will not be frozen, but will be limited to essential purchases which support the instructional program The district is trying to conserve resources, but not at the expense of the instructional program for which the budget was previously approved by the Board of Directors. The district will develop resource conservation criteria to be applied to individual school spending decisions. 3. Based on the district commitment to maintain the same level of the instructional services during the course of the 2008-09 school year, the district will continue to hire necessary instructional positions which become vacant. 4. Any non -instructional position which becomes vacant will be reviewed to determine if the position can go unfilled during the remainder of the school year. It is understood that any position that goes unfilled will require existing employees to re -prioritize work expectations in an effort to help the district conserve resources. PROPOSED LONG-TERM COST CONTROL ASSUMPTIONS FOR FURTHER SCHOOL BOARD CONSIDERATION Administrative Proposal. The obvious reason for refocusing the district's strategic thinking is the belief that we are entering a long- term financial problem for which there will likely be no favorable resolution in the immediate future. Even in the best of times over the past two decades, the district has not received the funding it needs from the state to operate the programs and services our community expects. As in the past, it will be up to us to be thoughtful, resourceful, and assertive in our efforts to preserve the quality of education we expect to provide in Lake Oswego. Initial Assumptions Heading Into the Next Biennium. 1. Resource Uncertainty. The passage of the local option has provided the district with a large measure of financial commitment from the Lake Oswego community. What is uncertain at this time is how successful the Foundation will be in its fundraising efforts and the extent and duration of the negative impact the recession will have on state funding for Lake Oswego schools. 2. The Challenge. As in the past, the district will plan for what it considers to be the most reasonable worst-case scenario at the same time it works to make sure that the worst case does not happen. We do know, however, that our spending on programs and services must be aligned with our level of resources. It will be up to us to make sure that we provide the most value for the available resources. 3. Mission. The district must stay committed to its mission of providing each student with a strong educational program and must focus on the efforts required to guarantee the quality and viability of our academic, visual and performing arts, and athletic programs. 4. Student -teacher Ratios. The district will need to re-establish program and service ratios at all levels of the instructional program. Teacher -student ratios and specialist -student ratios for 2009-10 must be viable in the context of the emerging economic environment. 5. Essential Service Levels. All non -teacher staffing (e.g., secretaries, custodians, educational assistants, administrators) should be determined at essential service levels. All central services and building level non -teacher staffing should be reviewed and organized to reduce costs while accomplishing essential functions. SuptPlauning:2008-09:Recession Plan Overview-Sa=gic Persp. 6. Participation. Cost reduction decision making will include participation by staff, students, parents, and community leaders. Better decisions occur when the creativity, expertise, and ideas of people within the organization and the community are included in the decision making process. 7. Partnerships. The district must continue to build strong strategic alliances with our parent partners who provide strong support to the district (e.g., the Foundation, parent -teacher organizations, youth sports clubs) and with community partners like the City of Lake Oswego, the Chamber of Commerce, the Lake Oswego Corporation, local businesses, the Lakewood Center, the Oswego Heritage Council, and neighborhood associations. 8. Multiple Strategies. No single strategy or strategic alliance will allow the district to overcome the economic challenges it is facing. Coping effectively with the financial problem we are anticipating will require the district to use many strategies and partner with many organizations. 9. Revenue Sources. The district must actively pursue avenues to increase revenue on both local and state levels. Active and assertive support of the Foundation will be critical to the district's vitality over the next several years. 10. Cash Reserves. The district must make every possible effort to conserve and effectively manage existing resources. As we enter these challenging economic conditions, the district's cash reserves are very limited and must be spent wisely. Natural Change Strategy. When in the past the district has faced the necessity of reducing staffing positions, the district has committed to a natural change strategy. Taking advantage of the natural changes within the organization where positions are vacated through retirements and resignations allows the district to reduce staffing over a series of years and thus have the time to make better decisions, maintain a commitment to its own personnel, and lessen the magnitude of the impact of significantly reduced resources in any one year. It is proposed that the district continue to employ its natural change strategy if the economic conditions require the reduction of staff. To make staffing decisions consistent with its commitment to its employees, the district will continue to seek to reassign current personnel to meet existing needs, lessening the number of our own staff who will become subject to reduction in force. 2. When a position is vacated in any program or service area, the district will evaluate the position. a. The district will determine if an acceptable level of service can be provided by eliminating the position and reshaping service delivery, thus reducing costs. b. If the district determines that the position must be filled, existing staff will be evaluated to determine if a current employee can be appropriately transferred into the position. c. If the district determines that the position must be filled and cannot be appropriately assumed by an existing employee, then the district will post to fill the opening. Closing Comments. The purpose of this document is to provide initial perspective, given the realistic assumption that in the foreseeable future our funding will fall short of expectations. Thus it is imperative that we begin to shape a clear and achievable vision for the future of our district. To do so, we must actively begin the process of rethinking and reshaping our program and service expectations in a way that will better align with the long- term viability of our schools. Though challenging, our ability to think ahead and plan well, including accurately predicting the range and impact of the decisions the state is likely to make, will continue to be critical to our success. We are entering these conditions much stronger than we have ever been. As in the past, if we continue to be strategic and to work together sensitively and insightfully, we will make the best of what looks to be a very difficult set of challenges. Supt:Planaing:2008-09:Recession Plan Over ki Strategic Persil. 6 Dr. Bill Korach STRATEGIC PERSPECTIVES, PART H Lake Oswego School District School Board Approved December 17, 2008 As our district's understanding of the state's financial crisis evolves, so must our strategies for addressing what appears to be an enormous funding problem for schools. Fortunately, our recent strategic planning and cost control decisions have been based on the premise that we are facing a long-term economic problem. But what is becoming increasingly clear is that the problem is a crisis and that the crisis is pervasive, systemic, and still deepening. In difficult economic times our financial mindset has always been to continue to provide the highest quality educational experience possible to each of our students within the economic conditions and constraints the district will be confronting. To do so, the district must exercise visionary, far-sighted, responsible stewardship over its financial resources to ensure the long- term as well as the short-term economic well being of the district. It is also important to note that in an uncertain and extremely challenging economic environment, preserving high value and high levels of performance requires continuous improvement, as well as striving to maintain what currently exists. Effective strategic planning is critical, but we must not lose sight of the fact that it is the spirit, expertise, will and commitment of all of us—teachers, administrators, and support staff—who make the most significant difference to the success of our district. Our first filter must always be what is best for the education, safety, and well being of our students. In pursuing that goal, we must also consider what is best for our staff so that they are best able to provide for our students. OVERARCHING STRATEGY ASSUMPTIONS 1. Two Year Time Framing. The district must plan with a positive and assertive spirit focused on preserving its strength and vitality for both years of the next biennium, which encompasses the 2009-2010 and 2010-2011 school years. 2. Multiple Strategies. The enormity of the financial challenges the district is confronting will require us to employ many complementary strategies, combining and interrelating several approaches such that even relatively small gains in several areas can add up to make a significant difference. 3. Planning Target. In an extremely challenging and uncertain financial environment, it is best for the district to plan strategies for a reasonable worst case scenario and adjust our budget decisions, assuming conditions could become better or grow worse. 4. Short-term Cost Controls. The district has already enacted short-term cost controls which must be made as effectively as possible to save financial resources for staffing during the upcoming biennium. 5. Adversitv and Opportunity. Because adversity always comes with opportunity, the district must act fast, be flexible, and remove barriers to take advantage of potential gains while moving forward within the framework of our core values and strategic commitments. SuptPlaania8:2008-09:2009-10 St"ic Perspectives Pert II 6. Balance Timing. The district must work to strike a harmonious balance between acting quickly to preserve valuable resources and take advantage of immediate opportunities, while also delaying actions to allow time for natural change opportunities to develop. 7. Marketing Commitment. Given that long-term student enrollment projections are decreasing and could exacerbate the district's financial challenges, the district should continue its investment in marketing efforts to retain our own students as well as to draw tuition students to the district. 8. Leadership and Participation. For the district to confront its economic challenges successfully, we must reaffirm the importance of both strong, insightful, decisive leadership in combination with the meaningful voice and participation of all those who will be directly impacted by district decisions and actions. 9. Clear Communication. Timely, accurate, and ongoing communication will be essential for effective participation and problem solving by board members, staff, parents, students, and the community in the decisions that will shape the future of the district. 10. Effective Management. In uncertain and challenging times, the district must be extremely well managed. With the instability that results from changes brought about by less than adequate resources, effective management is essential to creating the best possible conditions for people's success. RECOMMENDED ACTIONS FOR 2009-2010 BUDGET PLANNING 1. Prepare to reduce $1 million from the 2009-2010 budget in costs directly related to staffing, to be accomplished by the following: • Reducing the number of non -teaching management and support staff to essential service levels. The district initiated this cost reduction strategy during the early 2000s recession and very few of the support staff positions that were eliminated have been reinstated. Assessment of support staff positions and functions should be re-initiated. • Re-establishing teacher -student ratios in both general education and special education. Because our support positions are already staffed at close to essential service levels, the majority of staffing cost reductions will have to be made by returning to higher teacher - student ratios for both general education and special education. The staffing cost reduction of $1 million assumes a very strong Foundation effort of $1.5 million, as well as the governor's recommended budget allocation of a 3.4% increase for public schools. If the Foundation or the state exceeds funding expectations, it will allow the district to lower its staffing cost reduction target. Unfortunately several factors in addition to lower than anticipated Foundation or state funding could, also result in the district increasing its target level of staffing cost reductions. 2. Delay all non-essential maintenance projects and technology and equipment purchases to preserve money for staffing. The district has embraced this strategy in extremely difficult economic times to employ the largest possible number of people. Obviously the district cannot delay the maintenance or SuptPla—ing:2008-09:2009-10 Sb=gic Perspectives Part II the purchase of technology and equipment indefinitely, but these needs could be addressed when the economy becomes stronger. 3. Request to enter discussions with all employee groups in an effort to eliminate the non- essential expenditure of resources in order to preserve money for staffing. Both formal and informal contract discussions have always taken place between representatives of the district and representatives of employee groups to address concerns and explore options. It would not be appropriate in this document to suggest what contract possibilities might be discussed to help to save employee positions for the 2009-2010 school year. 4. Continue actively supporting the Foundation efforts to raise money for teacher staffing. Last year the Foundation raised $1.75 million for the 2008-09 school year, providing approximately 30 teaching positions throughout the district. The Foundation's efforts in recent years have been instrumental to the district's success, allowing us to minimize class sizes and to add breadth of program opportunity for our students. As state funding diminishes, Foundation contributions will be critically important to our ability to mitigate the impact of inadequate resources. 5. Begin realizing more revenue by increasing district efforts to finish high -return energy conservation projects, and increasing efforts to reduce day-to-day energy usage. Senate Bill 1149 allows the district to implement energy conservation measures at no cost to the district's general fund. These projects save energy, are funded by the state, and allow the district to charge management costs for project oversight and accountability. In addition, the district should increase efforts to reduce energy cost by identifying and implementing day-to- day conservation measures. 6. Delay the sequence of textbook adoptions so that the district will not incur the cost of a science textbook adoption until the 2010-11 school year. The district will also have to adjust textbook expenses by limiting purchases to essential materials. This recommendation is a short-term strategy and does not signal a change in the district's commitment to providing teachers with high-quality, updated textbooks and instructional materials. This one-year delay strategy will also allow elementary teachers to continue focusing on previous adoptions during the 2009-10 school year. TpYthnnk Adantion Cvcle - Current TeXthank Adontion Cvcle - Proposed Subject Adoption Science 2008 oo September 2009 Mathematics 2009 September 2010 World Language 2010 September 2011 Social Studies 2011 September 2012 TeXthank Adontion Cvcle - Proposed Supr.Planning:200B-09:2009-10 Strategic Perspectives Part II Subject Science Adoption Year In Classrooms 2009 September 2010 Mathematics 2010 September 2011 World Language 2011 September 2012 Social Studies 2011 September 2012 Supr.Planning:200B-09:2009-10 Strategic Perspectives Part II 7. Reduce district -sponsored professional development activities, focusing on high priority continuous improvement activities. The district must continue to sponsor meaningful, important professional development activities while seeking to minimize the amount of time teachers are out of their classroom. Both professional development and curriculum development activities must be structured to provide the most value for the available resources. The district should also remain committed to positive behavior supports, principles of learning, and cross -discipline generative concept development, but by utilizing its own staff expertise as well as Educational Service District expertise to eliminate the cost of paying for out -of -district consultants. Central administration should work collaboratively with building level administration and staff to develop cost reduction management and support staff organizational models that are tailored to individual schools. As the district works to reduce costs, it should support greater variations in staffing models on a year to year basis to make the most of unique conditions within a particular school. It should be the goal of the district to be reasonably flexible in the short run and return to more consistency across levels in the long run. That said, the district cannot support unique staffing models in a particular school that require the district to provide relatively more staff to any one school than it does to other schools at the same level. 9. Review fees and funding sources. The district has committed to maintaining the same tuition fee for the 2009-10 school year, but should evaluate all other fees and funding sources relative to program and service costs. Supt:P]anniag:2008-09:2009-10 Stmegic Perspectives Part 11 Dr. Sill Korach STRATEGIC PERSPECTIVES, PART III Lake Oswego School District School Board Approved January 26, 2009 One of the biggest challenges in planning for the future well being and vitality of the district is the uncertainty associated with the downward spiraling of our national and state economies. Our dilemma is that we must plan for a range of challenging conditions without the benefit of many stable economic assumptions. The most recent report updating state revenue forecasts affecting funding of education and other public services indicates that the state will be short in the current 2007-09 biennium between $300 million and $600 million in addition to the $146 million shortfall that was reported in November. Thus, the state revenue and school funding landscape continues to shift. Now there is a growing concern about the likelihood that public education funding will be cut in the current biennium, which will significantly impact our ability to fund our programs and services in the upcoming biennium. That said, in addition to what have always been district strengths -- the ever outstanding contributions and commitment of our staff, the tremendous support of our parents and the Lake Oswego community, and our longstanding success in strategic planning -- there are other sources of optimism. Because the governor and the Oregon legislature have a variety of options to address the anticipated shortfall in the current biennium, we have reason to believe our financial situation may not be as dire as it could be. The Oregon legislature is a diverse group, but we are fortunate to have an advocate for education in Governor Kulongoski, and to have local legislators Richard Devlin, the Senate majority leader, and recently elected Representative Chris Garrett both as strong supporters of education. LEGISLATIVE OPTIONS The Confederation of Oregon School Administrators characterizes legislative options to address the current shortfall as follows: 1. Federal Stimulus Package. Apply anticipated federal stimulus resources to backfill state losses. The U.S. House version of the federal stimulus plan includes $790 billion to go to states to support education and other services. Oregon's share would be about $790 million. The state is required to allocate at least 61 %, or about $482 million, of this money to education in Oregon, and could elect to allocate more. 2. Education Stability Fund. Apply the state's education stability fund to help fill the gap. This fund is currently estimated at approximately $390 million. The governor and members of the legislative leadership have said that they do not want to use this fund as they believe it will be needed to fund education in the 2009-2011 biennium. 3. Districts Absorb Losses. Refrain from backfilling the state's revenue losses, passing on the reductions to education and other services. Because these losses would be passed on at a time when there are only four months remaining in the 2008-09 school year, many districts have begun conversations about reducing days in the 2008-09 school year. SupcPlenning2008-09:Strategic Perspectives III 4. Use of Dedicated Funds. Wisely apply $410 million of other sources of revenue currently included in the federal stimulus plan and dedicated to Title I, IDEA, school facilities construction, and technology. The greatest benefit to Lake Oswego is likely to be realized in special services funding. BEST CASE VS. WORST CASE SCENARIOS Our previous reasonable worst case scenario for 2009-2010 was based on the governor's budget commitment to fund public education with an increase of slightly over 3%. Additionally, our planning for next year has assumed Foundation support of $1.5 million combined with assertive cost controls and spending limitations, including dramatically reducing maintenance spending, significantly limiting equipment spending, and delaying textbook purchases. These strategic choices will still require the district to reduce approximately $1 million in staffing costs. This now appears to be more of a best case scenario for 2009-2010 planning. A worst case scenario has the district trying to backfill up to $3+ million in state revenue losses in the current school year. The $3 million is a reasonable estimate of the losses that would be passed on to the Lake Oswego School District if the legislature does not choose to mitigate the impact of state revenue decline by choosing some of the aforementioned options. Because the Lake Oswego School District receives approximately 1% of the state's total funding for public education, a good rule of thumb for estimating the impact on Lake Oswego of state funding increases or decreases is to apply 1% to any state funding estimate. For example, if the state is going to reduce school funding by $300 million, Lake Oswego's share of the losses would be $3 million. Thus, as state revenue estimates continue to shift, our previous reasonable worst case funding scenario has now become our reasonable best case scenario. If the federal stimulus package does not arrive or if it changes form, or if the legislature does not apply the stimulus package to backfill losses in state revenue, our reasonable worst case scenario could exceed over $4 million in reduced funding for 2009-2010. Despite the dire possibilities, there are options and strategies which can be applied that would help immensely to mitigate the impact on our schools. There is hope that we can in some significant ways influence the conditions we are confronting. As always, our leadership choice is to accept the seriousness and magnitude of the economic realities we are facing without acquiescing to them. PREDICTABLE CHALLENGES These challenging economic times will require us to strategize and to work well together without putting staff members in the situation of recommending the elimination of their colleagues' positions. Additionally, systems change research and past experience with reduced funding tell us that three underlying issues will pose predictable challenges: fragmentation, competition, and reactiveness. 1. Fragmentation. Large, complex, high-performance systems are made up of many individualized subsystems with highly specialized functions. Thus, the system produces Supt:Planning:200":Sttategic Perspective III 2 high levels of productivity in each specific area. People in our district know the part of the organization they are responsible for very well, but may have limited understanding of how other areas of the district function. We do know that complex living systems are often counter -intuitive and that in large systems cause and effect are not closely related in time and space. Thus, we will have to devise communication processes to make sure we understand the likely impact on the entire system of cost -reduction decisions applied to specific areas. In other words, when all is said and done our school district must continue to function as an organized whole that provides the most value for the available resources. 2. Competition. Our school system has been operating in a very competitive environment for years. Lack of stable funding and declining enrollment have required us to market our district, competing for financial resources while continuing to strengthen our student program offerings and services. But it is not external competition which poses the greatest risk to our district's well being. Internal competition has the potential to be the most destructive force we may encounter. Although difficult choices will have to be made, we must be careful to support one another as we make those choices. To pit one program or level against another in competition for resources can work to destroy what we will need most: the whole Lake Oswego community pulling together for the education of our children. Reactiveness. When faced with lack of control over forces that negatively impact their lives, people have a predictable tendency to become fearful, to enter denial, to feel less valued, and to retreat into reactiveness. The economic challenges the district is facing are similar to those we have been through several times in the past twenty years. We have always worked through these difficulties by being proactive: recognizing the magnitude of the problem, addressing it strategically, depending on the expertise and commitment of staff, and supporting one another. STAFFING DISCUSSIONS Because the district now has to plan for a wide range of funding scenarios, the administration is going to begin discussing staffing for the 2009-2010 school year. These will be preliminary discussions based on potential levels of funding that will range from reducing staffing by $1 million to much more dramatic changes if the district has to address a funding impact in the $4 million range. What appears to be certain is that our discussions will start earlier than usual, although given funding uncertainties we anticipate the final decisions will come later than usual. PLANNED CHANGE STRATEGY Planned change occurs when the district determines it is necessary to reduce or to eliminate programs or services due to the changing economic circumstances. Planned decisions for such changes in programs and services will be made consistent with the district's mission, core values, and program foundation, and strategic vision. The School Board makes the final decision on instructional program and service level changes. SuptTlanning:2008-09:Stmtegic Perspectives III 3 NATURAL CHANGE STAFFING STRATEGY We should begin immediately to take advantage of the natural change within the organization where positions are vacated through leaves of absence, retirements or resignations. This strategy allows the district to reduce staff over a series of years and thus have the time to make better decisions, maintain a commitment to its own personnel, and lessen the magnitude of the impact of significantly reduced staffing in any one year. To make staffing decisions consistent with its strategic perspectives, the district will seek to reassign current personnel to meet existing needs, lessening the number of our own staff who will eventually become subject to reduction in force. 2. When a position is vacated in any program or service area, the district will evaluate the position. a. The district will determine if an acceptable level of service can be provided by eliminating the position and reshaping service delivery, thus reducing costs. b. If the district determines that the position must be filled, existing staff will be evaluated to determine if a current employee can be appropriately transferred into the position. c. If the district determines that the position must be filled and cannot be appropriately assumed by an existing employee, then the district will hire to fill the opening. A natural change strategy will help to save jobs for existing employees, but it will also require some staff to be transferred to cover positions that are vacated through resignation or retirement. Most often the transfers will be accompanied by some degree of reorganization of roles and responsibilities. TRANSFERS, REASSIGNMENTS, AND POSITION OPENINGS Licensed -Teaching Personnel In an effort to reduce staffing while preserving jobs for existing employees, the district should make significant efforts to transfer and/or to reassign employees to roles for which they are licensed or in which the district believes they can be successful. The district is very appreciative of the positive impact and productive commitment of teachers who have contributed so much to the district's efforts to provide a high quality educational experience for our students. The district also realizes the difficulties of coping with change and is committed to offering support to those employees who will be impacted by changes in their roles and responsibilities. 1. To accomplish the district's staffing goals, employee transfers and reassignments will be made on a systemwide basis. 2. The district has already notified the Lake Oswego Education Association of the possibility of reduction in force. Because the district is not certain about funding for next year, it is not possible at this time to predict the number of licensed positions that may have to be eliminated. The negotiated agreement specifies the conditions under which reduction in force would take place. Supt:PIRnning:2008-09:SUvWgic Pctspectivcs III 4 3. The district is hoping to re -hire as many existing staff currently employed in temporary positions as possible. Temporary employees will need to apply for position openings. 4. Requests for voluntary transfer will be considered as usual, but many decisions may be delayed until the district can be more certain of the overall staffing design. Classified -Operational Personnel The district is very appreciative of the positive and productive commitment of classified employees who have contributed to the district's efforts to provide high quality services with fewer employees. The district also realizes the challenges of coping with change and is committed to offering support to those employees who will be asked to make such changes. 1. In an effort to provide the most essential services with declining revenues, classified positions will continue to be redefined, requiring changes in roles and responsibilities. 2. The district has already notified the Lake Oswego School Employees Association of the possibility of reduction in force. Because the district is not certain about funding for next year, it is not possible at this time to predict the number of classified employee positions that may have to be eliminated. The negotiated agreement specifies the conditions under which reduction in force would take place. 3. In an effort to provide the most essential services with declining revenues, some employee hours may be reduced. 4. Any position vacated by leaves of absence, retirements or resignation will be evaluated to see if that position may be eliminated, with roles and responsibilities being redistributed. 5. In a worst case scenario, classified positions are likely to be reduced to below what the district considers to be essential service levels. Supt:P]anning:2008-09:Sa-=gic Perspectives III 5 Dr. Bill Korach Superintendent STRATEGIC PLANNING PERSPECTIVES, PART IV Lake Oswego School District School Board Approved February 23, 2009 CURRENT CONTEXT This fourth segment of the district's strategic planning perspectives is the last step prior to specific administrative recommendations for the district's programs and services in the 2009- 2010 school year. Although many uncertainties still exist, what is becoming clearer is that the district's situation within the context of the state's financial crisis is not getting better. That said, our biggest problem may not be an out -of -balance financial system that is crashing and will eventually self -stabilize, but rather the potential inability to recognize and accept that we are rapidly moving into a new economic paradigm. The larger implications for our district arise from the likelihood that the financial crisis will self - correct, but that for our foreseeable future this will not be a cyclical correction. We are not likely to cycle back to an economic system based on unsustainable relationships. Simply stated, the fundamental assumption that people can continue to buy what they want and believe they need, that they can't afford, with money that they do not have is ending. The problem we are confronting is deep, pervasive, and systemic — fundamentally structural, not cyclical in nature. Therefore, our district must plan for a new set of economic realities and assumptions. Our Lake Oswego community has rallied for us by passing the local option and supporting the district's Educational Foundation. However, our state's system for funding public education and services is badly broken, and the political will to address the problem appears to be in short supply. So how do we develop a vision that will guide our school district into a new and turbulent economic paradigm? Let's begin by referencing Einstein's insightful statement that "No problem can be solved from the same level of consciousness that created it." We know that the key to human consciousness is awareness, as well as the gifts of being able to remember the past and to imagine the future. We also now know that the majority of the funding for education in the federal stimulus package was cut as the Democrats and the Republicans sought to reach a compromise on that package. Difficult as it is to reconcile that sustaining the automobile industry is more important than providing survival funding to the states for public education, we are facing similar incongruities at the state level. We are being told by the governor and some of our legislators that even though funds have been set aside for the kind of crisis we are in, those funds should not be utilized now 1 because the economic problem is likely to be worse in the future. However, the high likelihood that the problem is going to be worse in the future is exactly the rationale for extending those funds now. School districts then can plan well for a very different future, over a period of time making thoughtful adjustments that require changing infrastructure as well as instructional program and service delivery models. FUTURE CONTEXT As Yogi Berra once said, "The future is not what it used to be." We are rapidly heading into a major reworking of our school district, and what we need most from the state are the rainy day and stability resources that will allow us the time to make the necessary changes to our system in a thoughtful, strategic, and creative way while taking advantage of natural changes in the organization. Additionally, we need the flexibility from the state to create the best possible educational system as well as to address the specific needs and aspirations of our community in a dramatically different economic paradigm. Thus our goal now is to try to convince the state's governing and legislative leadership that we are the best architects of our future, and we are best positioned to provide the most value as well as to optimize the available resources for the education, safety, and well being of our students. Our challenges are enormous, and yes, the impact of the economic crisis will have many significantly negative consequences. But as Einstein suggested, we have the advantage of conscious awareness, the advantage of understanding that we must accept the realities we are facing—not to acquiesce to them but to confront them by proactively recentering and reshaping the district using our awareness, reason, imagination, and insight. If we move forward with resilience and foresight, counting on the expertise and deep purpose commitment of our teachers, administrators and support staff as well as the support and involvement of our students, parents, and community, we will shape and reshape our district to continue providing the best possible educational opportunities for our students. KEY FRAMES OF REFERENCE To reshape our educational programs and services in order to provide the best possible educational opportunities to our students and families, the district must be guided by the following frames of reference: 1. Continue unwavering commitment to our core values. 2. Reconfirm and clarify our priorities. 3. Relentlessly pursue our strategic goals. 4. Strive to optimize our resources. 5. Maintain a positive and assertive spirit. 6. Ensure high performance in our core competence. Vision, strategies and commitments are important but we must never lose sight of the fact that the district's most valuable and meaningful resource is its people — the teachers, administrators, and all of the support staff who give so much to provide hope, possibility and opportunity to our children. As a district, we must work tirelessly and constantly strive to provide our staff with the resources, support, respect and appreciation that they so deserve. FINANCIAL SITUATION Based on what we currently know, it appears that what we previously expected would be our worst case scenario has now moved closer to being our most likely scenario. 1. One of the factors that we were counting on for our previous best case scenario has deteriorated at the federal level. A significant amount of money in the federal stimulus package that was initially dedicated to fund public education was removed prior to its passage. 2. Additionally, at the state level the governor and several key legislators are determined not to release school stability funds that could help school districts reduce severe cost cutting for the current school year. The district is working collaboratively with the Oregon School Boards Association, the Confederation of School Administrators, the Oregon Education Association, and the Oregon School Employees Association to lobby the govemor and the legislature to use available resources now to address the funding crisis. We should now expect that state revenue reductions will be passed on to school districts that will affect our funding for the current school year, and that projected state revenue declines will affect school funding in the next biennium. Accordingly, the district must prepare for revenue reductions in the $4+ million range going into the development of the 2009-2010 district budget. STATE REVENUE PICTURE The latest quarterly state revenue forecast indicates that Oregon faces a revenue deficit of approximately $850 million this fiscal year. Additionally, the state's revenue deficit is projected to be as high as $3 billion for the next biennium. As you know, the govemor and several key legislators are adamant about not spending any of the state's reserves to address the school funding problem this year. The governor has gone so far as to state that he will veto the use of state reserves targeted for schools. However, there is still a strong effort underway by a coalition of several organizations advocating for using reserves, as well as federal dollars, now to avoid school closures this year. We have reason to believe that the political forces advocating for schools combined with a well - considered plan to utilize state reserves, stimulus dollars, and ending fund balances can significantly decrease the impact of cuts in the current biennium. My analogy would be that given the reality of the economic crisis, we know surgery on our schools is inevitable. But there is an enormous difference between two courses of action: 1) providing skilled surgeons with the 3 time to assess, diagnose, and select the best possible strategy as well as the time to address the problem skillfully in surgical stages, and 2) handing them an ax and demanding that they immediately get the job done. DISTRICT VISION The district will need to reshape its programs, services and operations to be consistent with its mission and core values, to fit what is becoming a new economic paradigm. Given what now appears to be the likely magnitude of the impact the economic crisis will have on the district, it is important that we begin shaping a vision of what our school district's programs and services should be in the context of significantly reduced resources. As Michael Fullan asserts, "Vision emerges from as much as it precedes action," and we are in a position where we must act. Thus, although we are heading into an economic environment which the district has never experienced, we will continue to exercise considered judgment, stay committed to our core values, strive to ensure the vitality of our foundational programs and to focus our efforts on what matters—the education, safety and well being of our children. The district will continue with a positive determination to make the most of the situation in which we find ourselves. It is also important to note that it is too early for us to determine the exact nature of the resource reductions that will be affecting us through the next biennium. What we do know is that the economic crisis has compelled us to take immediate action: freezing non- essential spending and beginning the process of making substantial changes in the district's programs and services heading into the 2009-2011 biennium. Ultimately, the district will have to be engaged in a re -visioning process, but in the near term our focus will be to keep our eyes on the future while we attend to doing the best possible job of preserving what we have worked together to build over many years. DISTRICT PROCESS GUIDELINES Guidine Principle The guiding principle of our approach will be to first establish essential program and service levels, concentrating on continuing to do an outstanding job of providing educational opportunities in our three program foundation areas: 1. the core academics of English, math, science, social studies, and world languages 2. the visual and performing arts 3. athletics and extra -curricular activities. Although some changes will be required in these programs, we will strive to protect what we determine to be essential. Rather than making reductions across the board to all programs and services that we currently provide, and effectively risking bordering on mediocrity across the board, this approach to the financial crisis will result in the elimination of some programs and services. As in the past when we have faced significant economic challenges, we will narrow our focus and build from our strengths. Program Assumptions The programs and services in the district are all part of one large cohesive system, requiring all program and services decisions to be made in relation to the overall whole rather than being seen as isolated choices. 1. The district will reorganize programs from the inside out, first establishing the instructional conditions necessary to provide the programs and services determined to be most essential. 2. The district will continue striving to do an outstanding job of providing the core academic program at both the elementary and secondary levels. 3. Once the district establishes the personnel required to offer the programs and services determined to be most essential, the district will proceed to design the rest of the instructional program within the constraints of the available resources. 4. The district will seek to develop multiple and varied strategies to continue to provide as much of our elective and specialist -delivered instructional programs as possible. DECISION MAKING GUIDELINES Board of Directors The Board of Directors will make all final policy and program decisions relating to the district's response to the financial crisis. 1. By necessity, the Board must make decisions throughout the process, establishing frameworks from which to develop the district's overall approach to determining how to provide the most value for the available resources. 2. The Board of Directors will receive recommendations from the superintendent, and will then make all major policy and program decisions relating to program and service changes. Administration The superintendent will make program and service level recommendations relating to providing the most value for the available resources. 1. The superintendent will make a final recommendation on each program and service, taking into consideration the district as a whole based on the determination of essential program offering service levels. 2. District administrators and management staff will assist the superintendent in formulation of recommendations to the School Board. Employees To the extent that it is reasonable in these sensitive circumstances, employees will be asked to make recommendations and to share expert opinion. 1. The district will work in consultation with its employee associations, collaborating to develop strategies which will help to minimize the impact to the district and its employees from the economic crisis. 2. The district will rely heavily on its established leadership structures to seek opinions and recommendations from employees. 3. The district will seek opinion from employees about program changes, but will not seek employee input about any decision that would directly cause an employee to lose his/her position. Communitv The district will continue involving the community in processes to share opinions, clarify values, and recommend alternatives. 1. The district will rely heavily on its established structures for gathering community input, i.e., parent advisory committees, legal budget committee, site councils, coordinating council, and parent clubs. 2. The district will also hold a district -wide advisory committee meeting on March 2 as well as designate time at School Board meetings to provide avenues for employees, parents, students, and the community to share ideas and opinions. DISTRICT STAFFING PROCESS The following assumptions and strategies are recommended to guide our district staffing process for the 2009-10 school year. Even though conditions could still change to make our situation better or even worse, the district must begin working on staffing decisions for the 2009-10 school year: 1. The current economic conditions call for a zero -based staffing process where all programs and services at all levels and in all operations will first be staffed to meet the requirements and expectations that are determined to be essential or required by the state. 2. If the revenue crisis continues to worsen, we could well be looking at significantly reducing elective offerings at the secondary level and teaching specialists at the elementary level. 3. If the staffing reductions for next year reach a significant threshold, the district will need to rethink the structure and length of the instructional day at all levels. 4. Administrative and management positions should be reviewed to determine if positions can be eliminated, reconfigured, self supported or reduced in hours. 5. Classroom ratios and specialist caseloads should continue to be differentiated to correspond with student learning needs, program expectations, and facility capabilities. The structure of all program delivery models within the district must be able to accommodate staffing ratio differentiations. 6. Beginning immediately, any staffing position that is vacated for any reason should be reviewed to see if it can be eliminated, reconfigured or filled by an existing staff member. 7. To begin the staffing process, all temporary teaching and temporary non -teaching FTE should be taken out of the initial staffing model in all programs and levels. 8. The district should reconsider hiring practices to ensure that staffing decisions are consistent with the district's commitment to provide the most value for the available resources. 9. The district should restrict classified substitutes for all employee groups while giving special consideration to necessary staffing in Special Education Assistant roles, Extended Day Providers, and Food Service Assistants. PREVIOUS COMMITMENTS The district has previously committed to budget planning strategies detailed in Strategic Perspectives, Part H. The following actions have already been approved by the School Board and are well underway: 1. Prepare to reduce the district's budget from a best case $1 million to a worst case $4 million for the 2009-2010 budget. (Note: As explained in this document, the district's budget reduction target is now in the $4 million range.) 2. Delay all non-essential maintenance projects and technology and equipment purchases to preserve money for staffing. 3. Request to enter discussions with all employee groups in an effort to eliminate the non- essential expenditure of resources in order to preserve money for staffing. 4. Continue actively supporting the Foundation efforts to raise money for teacher staffing. S. Begin realizing more revenue by increasing district efforts to finish high -return energy conservation projects, and increasing efforts to reduce day-to-day energy usage. 6. Delay the sequence of textbook adoptions so that the district will not incur the cost of a science textbook adoption until the 2010-11 school year. 7. Reduce district -sponsored professional development activities, focusing on high priority continuous improvement activities. 8. Central administration should work collaboratively with building level administration and staff to develop cost reduction management and support staff organizational models that are tailored to individual schools. 9. Review fees and funding sources in all fee-based and potentially fee-based programs and services. (Note: As the size of the problem has increased, it has become apparent that the district needs to review all fee-based programs, as well as look to see what programs might become fee based.) SPECIFIC PROGRAMS AND SUPPORT SERVICE AREAS For the foreseeable future, the district must undertake the regular review, assessment and determination of its program and service expectations, staffing designs and its commitment to best practices. Our challenge will be ongoing, working skillfully to reorganize program expectations, staffing roles and systems relationships to provide the most value for the available resources. 7 Administrative, Management and Office Staff Review expectations, operations and services to determine what level of administrative, management, specialist and support staff is essential in all administrative offices, including the central office, school offices, facilities operations and special services, etc. Teacher Leadership Review teacher leadership expectations and job responsibilities to determine what level of teacher leadership support is necessary in the district's current economic context. Special Education Program and Services Special education programs and services should be reviewed, focusing on balancing the responsibility of maintaining service requirements for students and creating efficient systems that are as cost effective as possible. The following support areas should be reviewed: learning centers, psychologists, speech and language specialists, motor team, and the special services office. The continuum of placements and services, including special classrooms and placements, should also be reviewed. Any cost-effective reductions in programs, services, or case loads must coincide with federal- and state- mandated service obligations as well as with free appropriate public education requirements. On a very positive note, our special services program is slated to receive federal stimulus money to support district IDEA programs and services. Title IA Services The district should review its Title IA program and services model to determine what strategies will best serve our students while operating within the framework of the federal Title IA resources. At this point it does not appear that our district's Title IA program reaches a threshold level where it will receive federal stimulus money. Talented and Gifted Education and Services The district should review its talented and gifted program and service offerings at all levels to determine what efficiencies and strategies will best serve our talented and gifted students, given that we must provide the best possible services required by law with the available resources. Facility Operations Facility Operations, including systems maintenance and development should be reviewed for efficiencies and cost effectiveness. The district should also begin to model how it could adjust to resource reductions at different levels of funding ranging from essential service levels to survival service levels. Supporting classroom instruction and providing for community use of facilities should both remain high priorities. Community School The community school program offerings, staffing, and fee structure should be reviewed to ensure that it is self sustaining without significantly increasing fees to activities which directly support existing school district programs. Community school leadership should also focus on entrepreneurial strategies that generate revenue to support the expansion of its programs and services to provide educational opportunities, given that the district will be reducing educational opportunities. District Swimming Pool The district should revisit options for reducing its general fund contribution to operating the swimming pool, including increasing fees, reducing operational hours, developing new pay -for - participation programs, closing for extended time frames during the year, and closing the facility altogether. The district should also explore avenues to partner with the city and/or swim clubs to help sustain the cost of operating the pool. Secondary School Athletic Program The district should review the value and viability of the secondary schools and community schools athletic programs to determine what degree of program reduction and/or elimination as well as what increase in participation fees are the best course of action in the current economic context. The district should also reconsider the middle level athletic program to determine if we should continue competitive athletics with other schools or move toward what could be characterized as an intramural athletic program for middle level students. Music and Drama Extra -curricular Programs The district should review current fee practices for the elementary orchestra and strings programs and consider charging fees for participation in secondary school extra -curricular music and drama activities. Technology Services The district should review technology support services to determine an essential level of service that will be necessary for the educational program and management needs of the district as it works to reorganize in the context of expected economic conditions. Food Services Food services should continue to strive to organize its operations to be self-sustaining, understanding that the district is extremely challenged by its lack of high levels of federal subsidies and the state's new nutrition guidelines. 0 Transportation Transportation services should be reviewed to see if it is reasonable for the district to reduce costs by reducing services. It is important to note that the district is reimbursed by the state for approximately 70% of its approved transportation costs. The state also establishes service guidelines of one mile for elementary students and one and one-half miles for secondary students. Extended Day Proeram The extended day program should remain financially self sustaining and continue developing programs for prekindergarten students. The district must also review, assess and determine fees for all extended day program offerings. 10