The 2010-11 Grosse Pointe Public School System budget approved last night consumed hour upon hour of work and analysis to enable us to continue to deliver the high quality programs we have come to expect. While intensely difficult and painful at times, this budget and other financial achievements in 2009-10 will pay dividends for years to come.
Last night the Board of Education approved by a 5-2 margin the 2010-11 budget. Having participated in or observed GPPSS budget developments for the last six years, I can say with certainty that this budget cycle was by far the most difficult – arguably in the history of the district. Never before has the district had to cope with such mid-year cuts as we experienced in 2009-10 (an issue that needed to be permanently addressed in the 2010-11 budget) and never has the district needed to bridge a projected shortfall of over $7,000,000.
Such a difficult exercise required that we approach the budget like we have never done before. We started in earnest nearly a year ago, in August, when we had a sense of the enormity of the challenge. The data gathering and analysis started earlier and in greater detail than had ever been done before. We utilized the zero-based budgeting model, which forced us to evaluate every investment we made.
We published the initial draft of a complete budget in February, allowing residents and other stakeholders the earliest view it had ever had for an ensuing year’s budget. The feedback we received, amidst a flurry of ever-changing variables, drove five complete revisions of the budget, published and discussed every month from February through June.
The 2010-11 Approved Budget Overview provides a healthy summary of what was approved last night. The format of these overviews was also a new development for this year in an effort to translate the budget numbers into information meaningful to our residents – such as class size projections and program offerings. It also cataloged the changes in the five iterations of the budget, reflecting the feedback we received throughout.
In order to put the 2010-11 budget into context, last night I also presented the next installment in the series I developed last summer the GPPSS Financial Transparency Series_2009-10 Year in Review. It summarizes our financial accomplishments for the 2009-10 budget year and places into historical context the key financial metrics of the 2010-11 budget, such as enrollment, staffing levels, and tax revenues. Here are some of the highlights from 2009-10:
- Published the multi-part Financial Transparency Series (PowerPoint narrated videos).
- Successfully integrated Budget Modeling Utility, Staff Utilization Utility, Financial Benchmark and Health Care reports for financial analysis, budget planning, transparency, and contract resolution.
- Voters renewed Hold Harmless and Sinking Fund millages by wide margins.
- Closed a $3MM mid-year structural revenue gap from Foundation Allowance and 20J reduction. Project only a $1.2MM reliance on Fund Equity against budgeted $2.6MM.
- Completed the most transparent budget development process in history of the district.
- Approved a district-wide no fee All Day Kindergarten program, an offering that is already proving to boost enrollment.
- 2010-11 budget reduces taxes/fees by $785,000 for local taxpayers via all day kindergarten fee elimination and lower foundation allowance revenues.
- 2010-11 final budget and contract settlement avoided projected layoffs that would have incurred a wasteful $700,000 in unemployment costs.
- GPPSS has avoided school closings and other highly undesirable responses to budget challenges –unlike many well-respected districts across the state.
- Reached agreement with teachers and administrators on 4 year contracts that substantially mitigates risk of unpredictable enrollment, per pupil revenue, salary, retirement and health care costs.
GPPSS Financial Transparency Series_2009-10 Year in Review
Between the budget accomplishments of 2009-10, the budget of 2010-11 and the contract settlements, the 2011-12 school year budget is already practically completed. While never particularly enjoyable over the course of this year, what we accomplished financially in 2009-10 will deliver educational and financial benefits for years to come.