Thank You to Our Dinner Sponsors

Frisco Independent School District
Priorities-Based Budget Workshop
School Board, Stakeholder Committee, Steering
Committee, Working Group

Thank you for your service to Frisco ISD and our
community.
Call Meeting To Order

Anne McCausland
FRISCO
INDEPENDENT SCHOOL DISTRICT
School Board President
Budget Timeline & Process

Kimberly Pickens
FRISCO
INDEPENDENT SCHOOL DISTRICT
Chief Financial Officer
Priorities-Based Budgeting

Dr. Jeremy Lyon
FRISCO
INDEPENDENT SCHOOL DISTRICT
Superintendent of Schools
Campus Budgets &
Support Staff
Focus Group
Recommendation
§ Reduce per pupil allotment (PPA) for campus-
initiated subs to:
§ $3 for high schools
§ $5 for middle schools
§ $2 for elementary schools

§ Estimated Budget Impact: $118,000 reduction to
existing 2016-17 budget
Comments
§ PPA reduction at each level is
commensurate with 2015-16 actuals

§ Prior years were at even lower cost /
student levels
Recommendation
§ Reduce discretionary per pupil allotment
(PPA) by 15 percent to:
§ $139 for high schools
§ $115 for middle schools
§ $101 for elementary schools

§ Estimated Budget Impact: $1.03 million
based on 2015-16 PPA budget
Comments
§ Actual expenditures against PPA budget
indicate excess budget is allotted each year
(16 percent average over three years)

§ 15 percent reduction to the PPA budget
aligns budget more closely to actual
expenditures
Recommendation
§ Establish a discrete per pupil allotment
(PPA) for supplies for elementary, middle
and high school

§ Estimated Budget Impact: $555,000
Comments
§ Supplies make up 49 percent of the campus
non-labor budget.

§ Benchmarking results indicate FISD spending is
substantially more per student for supplies to
achieve same student outcomes.

§ Discrete PPA resolves widespread variation in
expenditures between campuses.
Comments
§ Consider managing PPA at lower levels similar to
Cypress-Fairbanks ISD approach; weighting PPA
for at-risk populations in excess of 30 percent

§ Effect of a 15 percent cost reduction:
§ ES PPA from $65.27 to $55.48
§ MS PPA from $73.03 to $62.07
§ HS PPA from $73.48 to $62.46
Recommendation
§ Offset per pupil allotment (PPA) with a flat
student fee at time of enrollment to cover
cost of classroom/club-related
extracurricular activities and related student
travel

§ Estimated Budget Impact: $506,000
Comments
§ Student travel and extracurricular costs are 9 percent
of total campus non-labor budget.
§ Fee assessment allows for continuation of activities:
§ $4 per elementary student
§ $5 per middle school student
§ $37 per high school student

§ Adjust fee annually (as required) to account for
increases or decreases in anticipated cost
Recommendation
§ Benchmark per pupil allotment (PPA) for
library books with peer districts and
continue efforts to reduce cost for both
paper and electronic content

§ Estimated Budget Impact: TBD
Comments
§ Cost reduction ideas:
§ Research alternative sourcing (for library and textbooks)
§ Explore options for sharing library content between
campuses / city libraries
§ Monitor / understand usage statistics to guide investments

§ Exploration of other vendors may reap
benefits in cost and ownership of digital
resources (e.g., Amazon contract with NYC
public schools)
Comments
§ Shared resources expands student access
to more content

§ Improved metrics identify issues and
improve investment decisions
Recommendation
§ Shift responsibility for payment of
professional association dues to staff

§ Estimated Budget Impact: $86,000 +
Comments
§ Strictly an affordability issue

§ Impacted staff members may be able to
claim cost as a deduction to their personal
income tax if amount exceeds two percent
of their adjusted gross income (AGI)
Recommendation
§ Perform a cost of services analysis

§ Estimated Budget Impact: TBD
Comments
§ Assess total cost & participation levels of elective courses and
compare against cost of core classes

§ Assess cost by course level (e.g., remedial, regular, gifted, AP)
§ Use results of analysis to determine the possible reduction of
low participation / high cost electives and shift funds to areas
of District priority in alignment with strategic goals

§ May include weighting the PPA for certain campuses
Comments
§ Contributes to the goal of reaching a balanced FISD budget
§ Shifts restricted resources to core subjects and electives
that serve a greater student population or a higher District
priority

§ Allocates funds to class levels that may require additional
funding to achieve District goals
Recommendation
§ Evaluate library aides and technology
specialists/support and reduce where
appropriate

§ Estimated Budget Impact: TBD
Comments
§ Library Aides: Use PTA volunteers (if PTA not
active, then request other school PTA
assistance/adoption)

§ Tech Specialist/Support: Look to possibly job
share more. Also, review a possible central
support call center to assist. Today’s technology
allows for screen sharing, FaceTime, etc. to
assist with problems. This should not affect
digital learning coaches.
Recommendation
§ Study Print Shop charges and campus
purchases for copy paper and toner to
create efficiencies

§ Estimated Budget Impact: TBD
Comments
§75 percent increase in cost of these
resources over three years:
§ 2013-14 cost: $653,000 – 11 percent of total expenses
§ 2014-15 cost: $974,000 – 14 percent of total expenses
§ 2015-16 cost: $1.14 million – 15 percent of total expenses
§ Cost/student increased from $14 to $21

§ We need to understand why and determine
whether this is the best use of limited
campus resources.
Recommendation
§ Reduce contract days for existing campus
paraprofessional staff

§ Estimated Budget Impact: $430,000
Comments
§ Ideas for reduction:
§ Eliminate five contract days to coincide with the first two days of
professional development prior to the start of school and three staff
development days during the school year
§ Provide paraprofessional staff the option to eliminate 1-5 days
depending on job need

§ Estimated 737 campus paraprofessionals earning
average salary of $24,866

§ This time is primarily unproductive and redundant for
returning employees; also creates stress/cost of
childcare.
Recommendation
§ Migrate to an integrated financial reporting
system to provide easy and timely access to
financial and operational data

§ Estimated Budget Impact: Requires initial
investment – cost/benefit analysis
recommended
Comments
§ Improves ability to analyze expenditures at
campus and district level (e.g. augment charge
line with supplemental program information to
assist in enhanced analysis of costs)

§ Provides ability to link costs to revenue at an
event level / tie total costs to program levels
Comments
§ Enhances timely and effective decision-
making

§ Shifts limited resources from “reporting” to
analysis
Transportation/Custodial/
Energy Management
Focus Group
Recommendation
§ Add a “revenue stop” within the two-mile
radius on each bus route to fill empty seats
with paid riders

§ Estimated Budget Impact: $764,750
Comments
§ Add one bus stop within the two-mile radius per route
§ Future recommendations would be to add additional revenue routes
based on demand, only “making” if fully paid for with percentage of
ridership.

§ Purpose is to fill empty seats with paid riders

§ Requires a mechanism to prioritize current riders
§ Currently, there are 189 routes averaging 11.6 empty seats.
§ Assuming a $350 rider per year fee:
Maximum revenue = 189 x 11.6 x $350 = $764,750
Recommendation
§ Discontinue busing for schools that don’t
meet the FISD exception policy

§ Estimated Budget Impact: $161,671
Comments
§ Keep current exceptions for elementary
students and eliminate grandfathered
exceptions

§ Impacts four elementary schools that
currently provide 100 percent busing
Recommendation
§ Eliminate all high school to high school
transportation, except to the CTE Center

§ Estimated Budget Impact: $286,962
Comments
§ Historical reasoning:
§ Interest in courses that do not make at the home campus
§ Scheduling conflicts including extracurricular activities

§ Students often miss significant portions
of class due to travel.

§ Alternatives exist (eg. online, teacher
travel)
Recommendation
§ Eliminate current middle school bus
exceptions

§ Estimated Budget Impact: TBD
Comments
§ Elementary exception rules were extended
to middle school students two years ago

§ Prior to this change, middle school
students fell under the same guidelines as
high school students
Recommendation
§ Prioritize and promote energy conservation

§ Estimated Budget Impact: $1 million +
Comments
§ Create / continue awareness campaigns
like the current contest between campuses
§ Expected to decrease costs by $250,000
§ Require principals and facility owners to
promote and participate

§ Provide additional resources to Energy
Management to manage data and facility
opportunities
Recommendation
§ Evaluate migrating the data center offsite

§ Estimated Budget Impact: Approximately 20
percent of current expenses
Comments
§ Current technology facility is energy inefficient

§ Solicit bids for migration to a co-location center
or managed hosting

§ Significantly-reduced local technology footprint
can save money and be more secure
Recommendation
§ Minimize usage of FISD facilities and
increase fees to rent space

§ Estimated Budget Impact: $250,000 to $1
million
Comments
§ Increase utilization of “free-energy” facilities
§ e.g. testing / training at Omni, The Star or Dr Pepper Arena

§ Reduce facility availability times during the summer
§ Four-day work weeks for summer staff
§ Open campuses two weeks (versus three) prior to school starting in
August [$250,000]
§ Only use minimal number of campuses/facilities

§ Review how central and administrative facilities are
used to consolidate or compress usage
§ Empty space could be “mothballed” or leased / sold
Comments
§ Eliminate food service energy use during
summer
§ Freezers, refrigerators, pilot lights, etc.

§ Limit times gyms and field houses are available

§ Calculate individual campus ‘rent-out’ costs and
charge third parties the actual amount for each
facility
Recommendation
§ Eliminate personal appliances from
classrooms/offices

§ Estimated Budget Impact: $700,000
Comments
§ An alternative could be to require a fee to
offset the cost of electricity
§ Energy Management would set the fee and ensure the
appliance meets energy and safety standards

§ The District’s insurance policy does not
cover personal appliances, so in the case of
damage (i.e. fire) the full liability would fall
to the owner of the personal appliance
Recommendation
§ Further increase energy conservation
measures

§ Estimated Budget Impact: TBD
Comments
§ Eliminate use of unnecessary lighting during
the day

§ Increase use of zones, timers and independent
switches during construction planning (e.g. parking
lots, decorative lighting)

§ Retrofit geothermal as appropriate (e.g. when
replacing older HVAC systems)
Recommendation
§ Ensure full-cost recovery of energy
consumption to individual programs and
third parties

§ Estimated Budget Impact: TBD
Comments
§ Review energy usage to ensure that
consumption is fully allocated back to the
budgets using the energy
§ For example, Child Nutrition should be charged fully for the
energy utilized to support that program.

§ Other programs, third party use of facilities and
contractors should be reviewed to determine if
energy charge-backs are appropriate.
Recommendation
§ Do not utilize a third-party firm to perform
an energy audit or provide other energy
conservation services

§ Estimated Budget Impact: $0
Comments
§ Energy Management has prior/recent audits
and we should focus on adhering to those
findings

§ Support and fund Energy Management in its
efforts to change human behavior
Recommendation
§ Explore solar energy opportunities

§ Estimated Budget Impact: TBD
Comments
§ Equipping newer high school(s) with solar
may be ideal to reach zero-energy

§ Get bids to revisit cost benefits / payback
Recommendation
§ Explore sharing of geothermal fields
through leasing opportunities

§ Estimated Budget Impact: TBD
Comments
§ FISD investment in geothermal energy sits
dormant during the summer months

§ Adjacent and/or third-party facilities could
tap in during peak/summer months (ex.
Collin College)
Recommendation
§ Do not outsource custodial services

§ Estimated Budget Impact: $0
Comments
§ While outsourcing could provide some quick savings, it
appears that it also leads to lower quality.

§ Additionally, eventual re-appropriation of staff would mean
lower benefits and salaries to gain the savings.

§ Outsourcing should only be considered for night staff and for
a controlled number of facilities.

§ This maintains alignment with the FISD mission statement.
Recommendation
§ Revisit routine cleaning schedules to
eliminate and/or extend certain services
based on need

§ Estimated Budget Impact: $50,000
Comments
§ Some custodial services are scheduled and
happen regardless of need.
§ For example, exterior windows on the
Administration Building can be cleaned once
per year instead of twice.
Recommendation
§ Implement reasonable “self-service”
programs to reduce custodial needs

§ Estimated Budget Impact: TBD
Comments
§ Create reasonable programs for reduced
services that are significantly time
consuming
§ Example: classroom trash receptacles can be
emptied to a central point by students each day
Compensation
Focus Group
Recommendation
§ Eliminate 403(b) match

§ Estimated Budget Impact: $750,000
Comments
§ The percentage of staff utilizing this benefit
is less than 25 percent.

§ This is a benefit that is unique to our like
districts.
Recommendation
§ Audit all stipends over the next two years
through a priorities-based model to reduce
stipend payments by 10-15 percent

§ Estimated Budget Impact: $330,000 -
$495,000
Comments
§ We noticed a great deal of variation of our
stipends in comparison to surrounding
districts.
Recommendation
§ Audit/examine contract days to ensure the
number of days paid is still applicable to
each position

§ Estimated Budget Impact: TBD
Comments
§ Reduction in days will save us in reduction
of funds

§ Opportunity to reduce contract days for
specific job titles
Recommendation
§ Provide the following salary increases for
all FISD staff:
§ 1 percent in 2017-18
§ 2 percent in 2018-19
§ 2 percent in 2019-20

§ Estimated Budget Impact: TBD
Comments
§ Any reduction of salary costs the District in human capital.
§ We considered teachers only, percentages based on class,
however we came to the conclusion that we are all in this
together. We are at the bottom 25 percent in pay for new hires
and 25 percent for experienced teachers.

§ We feel that any additional funds that may come out of the
current legislative session or this PBB process should be
prioritized towards compensation.
Class Size/Class
Schedules
Focus Group
Recommendation
§ Retain block schedule

§ Estimated Budget Impact: $0
Comments
§ Potential savings is outweighed by the
benefits.

§ Students have an additional class period to
accommodate academic and extracurricular
activities.
Recommendation
§ Establish a maximum load for teachers
§ Practical range of students for a full-time teacher

§ Establish a minimum number of students
for courses to be scheduled
§ Consolidate courses that have small enrollment district-wide

§ Estimated Budget Impact: $1.24 million
Comments
§ More efficient scheduling would reduce the
need to hire for vacant positions or add new
staff

§ Maximizes instructor time
Recommendation
§ Utilize full-time teachers for direct
instruction by eliminating support periods
§ Example: campus web manager, cheer coordinator, “coordinator”
for ISM, etc.

§ Assign one full-time teacher to Academic
Decathlon, Student Council, etc.

§ Estimated Budget Impact: $430,000
Comments
§ Consistency across the District

§ Maximizes instruction time
Recommendation
§ Restructure credit recovery and online
classes

§Estimated Budget Impact: $250,000 +
Comments
§ Credit recovery to be scheduled with ISS or
online learning class – combining both is
more efficient

§ Online course can be administered by a
paraprofessional.
Central
Administration
Focus Group
Recommendation
§ Reduce Central Administration costs to achieve
a five-year savings of $12.5 million

§ Estimated Budget Impact: $12.5 million over five
years or $1.8 million in sustainable cuts
§ Suggested approach:
§ Year 1 - $3.7 million
§ Year 2 - $2.6 million
§ Year 3 - $2.6 million
§ Year 4 - $1.8 million
§ Year 5 - $1.8 million
Comments
§ At this point, the team cannot recommend
specifics regarding personnel, programming,
supplies or other critical elements

§ Staff will have to analyze our complete list of
recommendations to get to specific dollars
Recommendation
§ Launch process improvement initiatives to
create efficiencies and avoid cost

§ Estimated Budget Impact: Approximately
$1.5 - $2 million
Comments
§ Ensure some percentage of savings can be
re-positioned towards retention of staff

§ Target IT-specific programs that facilitate
cheaper training or other cost heavy items
§ Example: ERP system upgrade to improve reporting and cost
management
Recommendation
§ Seek additional partnership and cost-
sharing opportunities

§ Estimated Budget Impact: $300,000 -
500,000
Comments
§ Explore partnerships with the City of Frisco on
tactical resources to seek economies of scale
§ Buying power
§ System / process
§ HR / planning / training

§ Expand cost-sharing relationship with Region
10
Comments
§ Explore partnerships with other districts for
curriculum efficiencies

§ Expand online partnerships / initiatives (e.g.
Summer School)
Recommendation
§ Conduct capacity analysis at the campus
level and review build-out/new school
opening schedule

§ Estimated Budget Impact: $200,000 -
350,000; up to $15 million for a second
round of school delays
Comments
§ Find one more multi-school delay in the
next four years

§ Review total school building capacity based
on the latest City Comprehensive Plan
§ Is it in alignment for a 15-20 year plan?
§ Are there opportunities for reduction?
§ Does 355,000 population target cause school budget stress?
Recommendation
§ Minimize consulting beyond critical needs

§ Estimated Budget Impact: TBD
Recommendation
§ Establish baseline metric and target of total
staff to student ratio

§ Estimated Budget Impact: TBD
Comments
§ Historical number of students for every 1
staff member:
§ 2012-13: 7.87 students
§ 2013-14: 8.13 students
§ 2014-15: 8.02 students
§ 2015-16: 8.21students
§ 2016-17: 8.02 students

§ The difference between 2015-16 and 2016-
17 represents $9.8 million
Extracurricular
Activities
Focus Group
Recommendation
§ Increase cost of athletic camps, court rentals
and gym rentals

§ Add rentals of high school indoor facilities,
basketball courts and middle school grass fields

§ Estimated Budget Impact: $2 million +
Comments
§ These numbers are representative if
facilities are rented at capacity, 15 days a
month, for 9 months.
Recommendation
§ Increase cost of admission to all athletic
events except varsity football by $1

§ Estimated Budget Impact: $150,000
Recommendation
§ Use anticipated Nike money to reduce high
school and middle school athletic
equipment budgets (2017-18 only)

§ Estimated Budget Impact: $150,000
Recommendation
§ Trademark school logos

§ Estimated Budget Impact: TBD
Recommendation
§ Charge parking fees for athletic events (VIP
and preferred parking, but still provide free
parking)

§ Estimated Budget Impact: TBD
Recommendation
§ Implement a utility fee to offset athletic
expenses for security, transportation, game
officials and laundry
§ For example, a single annual athletic fee such as
$100 for middle school and $200 for high school

§ Estimated Budget Impact: $1.9 million
Comments
§ Consideration for multiple student families

§ We are hoping this is temporary and should
be used with caution.

§ This should be considered only if absolutely
necessary.
Recommendation
§ Evaluate:
§ Coach/director student ratios
§ Contracted services
§ Stipends
§ Ways to retain extracurricular staff
§ Adding a Booster Club liaison
§ Consolidating/streamlining extracurricular staff functions under Student Services
§ Hosting more athletic/academic competitions within Frisco
§ Shared transportation when appropriate
§ Paid memberships to state organizations
§ Uniform replacement cycle
§ Increasing fees for school-owned instruments to fully cover repair and maintenance costs
§ Capital outlay procedures

§ Estimated Budget Impact: TBD
Comments
§ At this time, we do not recommend changes
that have a higher negative impact on
students.
§ No reduction in student opportunities.
§ No reduction in student competition.
§ No reduction in program quality to maintain
competitiveness.
Revenue
Generation
Focus Group
Recommendation
§ Raise rates on all revenue-generating fees
by an average of 20 percent

§ Estimated Budget Impact: $1 million
Comments
§ Currently facility rentals are at capacity (i.e. Sunday
church services) and this allows FISD to optimize
revenue

§ Consider opening up additional fields and facilities
(middle school and high school)

§ Not a true 20 percent increase in revenue for all
categories due to locked-in contracts (i.e. cell phone
towers)
Recommendation
§ Partner with third party agency to determine
value of FISD untapped assets

§ Estimated Budget Impact:
§ Year 2018 – Goal of $2 million
§ Year 2019 – Goal of $3 million
§ Year 2020 – Goal of $5 million
Comments
§ Let the experts be the experts
§ Would give up 10-20 percent of the revenue to third party but would save
ramp-up and human capital costs on FISD budget

§ Optimize untapped assets for revenue generation
opportunity
§ Naming rights (stadium, CTE center, labs)
§ Advertising at sporting venues (baseball outfield walls, basketball / volleyball
courts)
§ Events
§ Website
§ Buses
Recommendation
§ Swap $0.04 - $0.08 over the next five years
from the surplus of the Interest and Sinking tax
rate and contribute to the shortfall of the
Maintenance and Operations budget

§ Estimated Budget Impact: $54 - $67 million
through FYE 2020
Comments
§ Swap of I&S tax rate would fund $54 - $67
million of $93 million* shortfall through FYE
2020

§ Assuming 30 percent recapture on increased
M&O tax rate, the tax swap would net $41 - $52
million of $93 million* shortfall through FYE
2020
Comments
§ Unassigned fund balance can be utilized to fund the remaining
deficit, provided that fund balance never goes below 60 days
budgeted M&O, per conversation with our FISD financial advisor
(most clients 60-90 day range)
§ Keeps us in a safe place to keep our high bond and credit ratings
§ Forecast deficit does not take into consideration possible
adjustments / updates to the state funding formula,
demographics, competitive wage increase, benefits, retirement,
additional state mandates, interest rates and construction
costs, etc.
Discussion
§ Questions?
§ Comments
Final Reflections

Dr. Jeremy Lyon
FRISCO
INDEPENDENT SCHOOL DISTRICT
Superintendent of Schools
Adjourn

Anne McCausland
FRISCO
INDEPENDENT SCHOOL DISTRICT
School Board President
Thank You

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