Scottsdale Unified School District No Dream Too Big . . . No Challenge Too Great

The option of placing a M&O (maintenance and operation) budget override election on the March 11, 2003, ballot, will be on the agenda of the Oct. 22 Governing Board meeting, at the request of Board Member David Goldstaub.

The request came on the heels of a detailed financial status report, presented to the Board by Chief Financial Officer Bob Flach. The report correlated a number of fiscal issues facing the District at the local, state, and national levels. On the revenue side of the ledger sheet, Mr. Flach noted that the loss of $9.9 million over three years due to the defeat of a M&O override last year will impact the budget, as will a shrinking balance in the Plant Fund. The loss of Plant Fund revenues being available to balance the General Fund means another reduction of about $5 million over three years, beginning with last year.

Additionally, on the expenditure side, Mr. Flach reported that the Arizona State Retirement System projects a doubling in the employee and employer contribution rates for the next fiscal year. This translates into $2.8 million in added costs for the District, and an increase in payroll deductions for employees.

The District also is carefully watching sales tax receipts, which drive Prop. 301 revenues for teachers; and the growing state budget shortfall for the current fiscal year and the next fiscal year. Mr. Flach reported that there continues to be suggestions at the state level to cut soft capital for K-12 as a means to offset the state's budget dilemma. For school districts like Scottsdale, this could result in fewer dollars for textbooks, software for students' computers, and school buses.

Superintendent Barbara Erwin also noted that the same financial information being shared with the Board was being shared across the District at faculty and staff meetings at each campus, and with parent groups. Mr. Flach, Dr. Bill Johnson, and Dr. Erwin have been disseminating timely financial information as part of the administration's commitment to communicate with stakeholders throughout the year.

In other reports to the Board, the annual summary of 1997 bond funds was presented by Dr. Bill Johnson, chief of facilities and operations. Dr. Johnson recapped by noting that in 1997, SUSD voters approved authorization of a $106 million bond for capital improvements throughout the District.

To date, the 1997 bond has funded renovations at 25 existing school campuses; replacement of portable classroom buildings with permanent construction; replacement of three existing schools (Cochise Elementary, Supai Middle, and Tavan Elementary); construction of two new schools (Copper Ridge Middle and Elementary); retrofit of old school buses with air conditioning; replacement of old worn out furniture and equipment; upgrade and repair of kitchens, roofs, and mechanical systems; improvement of site security; athletic program equity; new computer labs; upgrade or replacement of obsolete computers; replacement of obsolete phone systems; and expanded networking and connectivity.

The bond budget that was adopted by the Governing Board included $23 million for new construction, $63.2 million for renovation and retrofit of existing schools, $4.5 million for equipment and furniture, $15.2 million for technology, and $755,000 for bond administration and management.

The 1997 bond funds have been expended within the timelines required by law, Dr. Johnson reported. As of Dec. 31, 2001, more than 90 percent of the funds had been committed under contract, and more than 90 percent of the bond funds will have been expended as of Dec. 31, 2002.

"In fact, SUSD is ahead of this schedule," Dr. Johnson noted.

Board Member Tom Carey marveled that the entirety of this work had been completed in only three years. "To have this amount of work completed in that timeframe is almost impossible," Mr. Carey said. He thanked Dr. Johnson, the Building Services staff, and the current administration for this "enormous accomplishment."

In other action, the Board:

• Learned that 2,524 students were enrolled in summer school this past summer and 218 students were enrolled in evening school between Feb. 6 and May 5. Additionally, 580 students are being served at seven pilot sites for all-day kindergarten this fall. All of these new community education programs are on a tuition basis at no additional cost to the District.
   
• Accepted gifts valued at $13.651. Gifts were received from Hopi PTA, CC Nguyen and K.P. Chu, Wells Fargo Foundation, Target, Brad Kramer, Saberlinks PTO, and Washington E.S.D.

Additionally, Mr. Carey requested the administration to look into neighborhood parking issues at Cheyenne Elementary School.

The next Governing Board meeting is scheduled for 7 p.m., Tuesday, Oct. 22, at the Education Center.
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