July 8, 2010 Workshop-Special Meeting
Call to Order (4:00 p.m.)
Minutes: Present: Carol Vallencourt, District 1; Carol Studdard, District 2; Charles Van Zant, Jr., District 3; Frank Farrell, District 4 and Lisa Graham, District 5. Superintendent Ben Wortham was also present.
2. Financial Review
Superintendent Wortham commended the hard work of Dr. Copeland and members of the finance and senior staff that went into preparing a balanced budget, as well as an adequate fund balance, while trying to avoid eliminating jobs. The Superintendent also reminded the Board that the face of the school system has changed and will most likely continue to change in the years ahead.
Dr. Copeland provided handouts and an overview of the current budget for 2009-2010. He pointed out some accomplishments that were made through reclassification of certain expenses and the rescinding of some school and district encumbrances. He advised the Board that the last five payrolls for 2009-10 were less than anticipated. Also, at the end of the fiscal year we received a check, that we were not expecting, from the County Tax Assessor's office in excess of $2 million in delinquent tax sales . The ending fund balance for 2009-2010 was $16.8 million.
Additional cuts recommended by the Superintendent for 2010-2011: 1) DROP - eliminate those exiting DROP and those who simply retire from returning at their current step, 2) eliminate resource positions in the schools, 3) some salaries and benefits will be charged against Medicaid's additional funds, 4) eliminate the $100 per month retiree health insurance subsidy, 4) reduce the Worker's Compensation contribution rate from the general fund to the self-insured fund, and 5) reduction of 2% in Superintendent's salary, for the second year. Based on these additional cuts, the impact will be a 3.61% Unreserved Fund Balance or $8,631,000 in unreserved funds.
|Approve the budget reductions set forth in the proposed plan for appropriations as presented.||- PASS|
|Motion: Charles Van Zant, Jr.|
|Second: Carol Vallencourt|
|Frank Farrell||- Aye|
|Lisa Graham||- Aye|
|Carol Studdard||- Aye|
|Carol Vallencourt||- Aye|
|Charles Van Zant, Jr.||- Aye|
3. On-Site Clinic Proposal
Sheila Gann, Coordinator of Health Benefits, explained information she received from the Health Care Reform Act as it relates to grandfathering certain aspects of our health insurance benefits. Because of significant changes we have made to our current health care plan, our district did not qualify for grandfathering. Therefore, by federal mandate, all preventative services must be provided to employees at no cost. That means our rates would change dramatically by approximately $180,000 annually. Cost would be added to the increase that has already been established.
Ann Gebhard with Aon, provided a summary of On-Site Clinic benefits, costs, expenses, scope of services and facilities.
Consensus of the Board was to delay consideration/action to a future year.
4. Exclusive Beverage Proposal
Minutes: Dr. Copeland explained to the Board the issue with the exclusive beverage contract. District earned money with the exclusive contacts, of which 99% went to schools. A new federal law, American Beverage Association, says schools can no longer sell high carb/high sugar drinks. Pepsi and Coca Cola can no longer pay big profits to schools. A committee was formed and the decision was made to create our own contract. We are not proposing an exclusive beverage contract as of July 1, 2010.
Supt. Wortham requested we look into providing security cameras at OakLeaf High via some contingency money that is available through Capital Outlay. Mr. Elliott sought Board consesus on the use of contingency funds to provide cameras at OakLeaf High School. Approval of the inclusion to Change Order #15 would allow cameras to be in place by the beginning of the new school year. Mr. Elliott also asked for the Board's position on providing cameras to other existing schools. Board consensus was given to use contingency funds for cameras at OakLeaf High and Capital Outlay funds on high schools with partially operable systems. In year two, high schools with no security cameras will be scheduled for installation with Capital Outlay funds.
Regarding Education Jobs Fund, in conference call with the Commissioner of Education on Wednesday he received an update on its status. It is in Congress, it has been reviewed by the House and will be addressed on July 27th in the Senate. It appears to be favorable. Money was pulled from Race to the Top funds. If approved, and it passes the Senate it will go to President. That means $552,000,000 will go to the State of Florida for Education Jobs if the President approves it. This money is another layer of federal stimulus funds.
Linda Champion, Chief Financial Officer at Department of Education, has been appointed to a Task Force on the Oil Spill Impact. They will report on the impact on the economy in Florida, the beaches, the fishing industry, tourism, etc.
Congratulations to Charlie Van Zant, Jr. on 4 more years as a School Board Member.
School Board's Requests
Frank Farrell requested another workshop to discuss suggestions from the Board on the recent survey of budget reductions. He would also like to add to the list suggestions from the Superintendent and staff. A Workshop was scheduled for Tuesday, August 3, 2010 at 3:00 p.m. at the Teacher Training Center at Fleming Island High.
Liz Crane, CCEA, advised the Board that today Governor Crist posted a special session for July 20 to July 23, 2010 on the Constitutional Amendment to Off-Shore Drilling in Florida Waters.
Mrs. Adams notified the Board of the passing last night of a teacher, Gina Frazee - Keystone Heights High School.
Adjournment (6:50 p.m.)