Ed Jobs Act Funding update

Thanks to a loyal reader for pointing out this article from the Milwaukee Journal Sentinel online.
Clearly some districts have held onto a lot of the Ed Jobs money.  Sun Prairie has about $1,000,000 remaining.  How will it be used?

http://www.jsonline.com/news/education/115072454.html

King of the Mountain

Why is the district planning on sitting on $1.75 MILLION dollars that landed in our laps via the Education Jobs Fund?
The folks we hear from theorize that it's being held in reserve for one of two reasons:
1. To make Tim Culver's dream Charter school come true, or
2. To use in case the community votes to reduce the proposed levy again.

Seriously...
Phil Frei comes out of the chute insisting that all this money must be spent THIS school year.  Suddenly, it's a 180 degree about face with a plan to spend not one dime this year.
Even the prospect of using some of the money to fund retirement incentives for those approaching the $100K Club is being pushed off until discussions with SPEA, which won't even begin until next spring.

So...there's NOTHING we can do with this money to help staff, help the community THIS year?
That figure represents about 2.5% of the ENTIRE budget.
If you support this district posture, school board, then shame on you.
You were elected to manage the school district AND make decision to help the community.  If your employees won't do it, then you need to do it for them.


Of course...if you'd really prefer the community do your job for you, then, by all means...we suspect that business will be taken care of come October 11.  

Would YOU Spend $200K to Save $1,000,000?

Are you kidding us?  Who WOULDN'T?

Here are some simple numbers:
1. The top 20 highest paid SPEA members will each be at least 57 (minimum state retirement age) in 2011.
2. The top 20 highest paid SPEA members will each have at least 32 years in  by 2011.
3. That qualifies EACH of them for 100% Wisconsin Retirement System benefits.
4. Their combined salaries cost over $1.53M annually (and + 3.5 to 4% per year).
5. Their combined benefits cost over $560K annually.
6. 20 senior staff members cost us over $100K EACH per year.
Imagine if:
1. We used $200K of the $1.75M Education Jobs Fund money to offer each of these people $10,000 to commit to retiring at the end of the 2010-11 school year.
2. That wipes $2.1M of costs (salaries + benefits) off the books.
3. Now say we replace them with teachers making even...say...$40,000.
4. New salary cost would be $800,000----instant $730K savings.
5. New benefits costs would be about $290K....instant $275K savings.

Those moves would reduce our school district budget by over $1M.
Those moves would create jobs for fresh, energized teachers.
Those moves would not hurt the retirees; typically retirees make out better in retirement.  And they've done their time.
And the best part is that the savings keep on getting better.  It's far more of a burden to carry $80K, 30+ year employees on the payroll than $40K, younger staff.


So...why isn't this a "gimme"?
We get it...some of you are saying...but why are we giving them $10K each?
BECAUSE IT'S NOT EVEN OUR MONEY!  
This is a once in a LONG LONG time opportunity.


But the district only wants to "consider it" in closed session.  The following is taken from the Situation Report for this Monday night:

The following recommendations were adopted by the Management Team on 9-2-10.

3. To consider the use of EdJobs program to fund retirement incentives as an SPEA negotiations item to assist in the retention of staff in future years.

Retirement Incentives. These funds present an opportunity to consider negotiation of retirement incentives w ith the SPEA. Such actions might reduce the long-term costs of SPEA staff ing, thus helping to retain future jobs. As this would need to be a negotiated item, [Says WHO?] the administration would like to discuss this option or possibility further in closed session tonight.

And why does the district feel offering a retirement incentive has to be negotiated?
It's called an OPTION, folks.  No one HAS to take it.  It's optional.  That's kinda the way an option works.   In fact, it serves as the basis of many powerful offenses in football. [Gratuitous football reference]

Therefore, being an OPTION --as opposed to a FORCE, it does NOT need to be negotiated.
Simply state that the offer is eligible to anyone of retirement age that meets retirement requirements.  In fact...offer it on a first come, first serve basis.  Create incentive to retire early and retire often.

Myths & Legends and the $1.75+M Education Jobs Fund Cache

As is usually the case when the school district comes into a wad of cash, cold hard facts and clarity tend to get tossed by the wayside.  We think this one statement says it all:

The money is aimed at personnel…..saving, creating, and retaining jobs. This includes provision of pay, benefits, training and development that will help recruit/retain staff positions.

Myth:  We HAVE to use this money THIS year (2010-11)
FACT:  The documents are clear.  The money can be used anytime but must be expended by 9/30/2012.  Seriously...with 2 months of the school year already in the books, and some school districts already having passed their budgets, did it even remotely sound logical that we would have to spend it all by June 30, 2011?

Myth:  The money must be used to hire teachers.
FACT:  You can use the funds to support school‐level jobs. You cannot use the funds to pay district‐level administrative positions, but you CAN use the funds to pay for teachers, teacher assistants, principals, assistant principals, counselors, librarians, physical/occupational/speech therapists, custodians, cafeteria/school lunch staff, bus drivers and other school‐based workers (this would include a social worker who, while paid at the district level, spends all their time at the school level, on‐site, working with students).

Myth: We can't use any of this funding to pay for school security or groundsworkers.
FACT: " In addition to teachers, employees supported with program funds may include, among others, principals, assistant principals, academic coaches, in-service teacher trainers, classroom aides, counselors, librarians, secretaries, social workers, psychologists, interpreters, physical therapists, speech therapists, occupational therapists, information technology personnel, nurses, athletic coaches, security officers, custodians, maintenance workers, bus drivers, and cafeteria workers. "

Myth:  This money can only be used to hire new staff or call back laid off staff
FACT:  If you were not reducing personnel, you can use the federal funds to cover those existing salaries/ wages (you CAN supplant at the district level) and reassign the freed‐up local dollars for other budget needs.

Myth:  We could not use any of the money for health insurance costs or early retirement incentives.
FACT: "...must use its funds only for compensation and benefits and other expenses, such as support services..."; the phrase “compensation and benefits and other expenses, such as support services” includes, among other things, salaries, performance bonuses, health insurance, retirement benefits, incentives for early retirement, pension fund contributions, tuition reimbursement, student loan repayment assistance, transportation subsidies, and reimbursement for childcare expenses."

Prohibitions on the Funds

prohibited expenses are administrative expenditures related to the operation of the superintendent’s office or the[District's] board of education, including the salaries and benefits of [District]-level administrative employees.  "...prohibited activities include the payment of expenditures for fiscal services, [District] program planners and researchers, and human resource services."

A [District] may not use the funds to pay for contractual school-level services by individuals who are not employees of an [District] (e.g., janitors employed by an outside firm).

There's even a phone number and e-mail address for questions!
You may submit specific questions about the Ed Jobs program by e-mail to EducationJobsFund@ed.gov or by phone at 202-453-7500. We will respond promptly to your questions.
We're betting that an open records request will not yield any calls or e-mails--after all....we know better than the rest. 

RESOURCES to answer questions about Education Jobs Funds
US Dept. of Education link
Link to document: Initial Guidance for States on the Education Jobs Fund Program
American Association of School Administrators - Q&A: Education Jobs Fund

______________________
Called the fool and the company,
On his own where he’d rather be.
Where he ought to be
he sees what you can’t see, can’t you see that?

Maybe he’s caught in the legend,
Maybe he’s caught in the mood.
Maybe these maps and legends
Have been misunderstood.
---R.E.M. Maps and Legends

Budget Approval Put On Hold - Money Comes Swirling In

The big ticket item on the Finance Committee agenda this week, as typically occurs, was the "approval" (and forwarding of the budget to the full school board.

Holy Cartloads of Cash, Batman!
Stop the presses.  Before the agenda item even came up, Finance chair and seabass connoisseur Jim McCourt, announced that the committee would table the item because of the $1.75M the district is about to receive via the Education Jobs Fund.  Yeah...$1.75 M could change the budget a tad.

In our last episode, the budget called for a 5% increase in the tax levy.  $1.75M could change that pretty dramatically.

Stay tuned...

Another Pot of Money With Which to Play!

It will be interesting to see how this one plays out, sports fans.  We learned late last week....after the board working session on the budget, that Sun Prairie would be receiving  a little more than $1.75 MILLION dollars via the federal Education Jobs Act funding,  This is "new money", not accounted for in the budget that will be approved at the Finance Committee table this Monday night (8/23/10).

WISCONSIN APPLIES FOR $180 MILLION FROM EDUCATION JOBS FUND
On Thursday, Aug. 19, Gov. Doyle signed Wisconsin’s application to receive its nearly $180 million share of the $10 billion Education Jobs Fund. The dollars will be distributed to local school districts using the state’s general equalization aid formula in order to distribute dollars to as many districts as possible.

According to the Department of Administration, districts may begin utilizing these funds to cover salary and benefit expenditures as of August 10, 2010.
\The state must distribute the dollars to schools during the 2010-11 school year.
The money will be sent to districts as federal aid and will be outside revenue controls.
Local school districts will have until Sept. 1, 2012, to “obligate” the funds.
While the intent of the law is for the funds to be used immediately, the law allows local school districts to carry over some or all of the funds for staffing needs in the 2011-12 school year.


The money must be used in local school districts for “salaries, benefits, and support services” for school-level district employees—teachers, principals, counselors, custodians, nurses, etc. Funds may not be used for district-level employees or contracted employees. Funds may not be used for “general administrative expenses” or for “other support services expenditures.”


School districts can opt to use the dollars to call back staff members who were laid off, hire new staff, or use the funds for current employees and free up local dollars for other uses.


The funds can be used to extend the school day and/or school year, provide summer school, or offer incentives to recruit or retain staff.


As with the stimulus funds from the American Recovery and Reinvestment Act (ARRA), there will be reporting requirements on how many jobs were created or saved.
As with the ARRA stimulus funds, it is important for the public to understand that these dollars are needed by local school districts and will be used as Congress intended —to save teaching jobs. Although individual districts may no longer be in a position to call back teachers who were laid off for the 2010-11 school year, communications to the media and/or public should indicate that: 1) these funds will be used; and 2) they will be used to keep teachers in the classroom.

$1.75M!  That would pay for quite a few positions....which would free up that money for ...dry erase markers!  or reams of copy paper! or glue sticks!
We're sure the hamster wheels inside the district braintrust are spinning mightily!  But we need a school board to counsel them how to BEST use this money to help the community that just gifted them with $100M in new/renovated schools.


This money could fund:

• any new teachers needed based on increased enrollment.
• fund summer school teachers for next summer (we actually make a profit from summer school!)
• Teachers aides (you know...local 60 members, the one place in the budget where Caren Diedrich wants to slash and burn)
• Early retirement incentives so we can replace $80K kindergarten teachers and elementary school librarians for HALF THE COST OR LESS with energized kids coming out of school 

The bottom line, of course, is that if used to support EXISTING positions/programs for the 2010-11 school year, that means that the budget can be REDUCED by as much as $1.75M.  And THAT is a way to help struggling community members.  Yes, it may be a one-year fix....but we may have stumble through a few of these one-year fixes before the Powers That Be figure out that something needs to change permanently.