The Supt’s Scoop
Superintendent of Schools
Dr. Marc A. Puig
As an educator, I firmly believe that the district’s budget is a moral document that determines whether districts are making “budgetary” decisions with the best interest of children in mind. We must be honest with ourselves as an organization before we can truly change the organization for the better.
We are making every attempt to do just that and all of us are working diligently to bring back the focus of operating with the best interest of students, staff and community in mind. It is absolutely critical that those of us that have been entrusted to safeguard the district’s coffers closely monitor our expenses and re-evaluate the way we conduct business from this point on.
With this said, as the district’s current leader, I am working with our trustees and key personnel to make progress while safeguarding the district’s current fund balance, which is at an all-time low. Today, I will discuss some of the measures that we are implementing to improve the district’s current financial standing. I trust that you, our community members, will remain patient and understanding while we work to resolve our current financial predicament.
Fact #1
The district began the school year with a budget deficit of $700,000; therefore, we are currently tasked with the “opportunity” to completely revamp the way we do business in SBCISD moving forward. My attempt is to work with leaders to balance the budget by instituting a zero-balance budgeting approach. I implemented this approach at another district by working with the board to solve their budget woes, thus enabling district officials there to balance the budget for three consecutive years. This is not rocket science. This simply means rebuilding the budget from the ground up. This approach involves efficiently allocating resources based on needs of the organization, rather than “wants” and “history.”
Taxpayers, I am in the process of working with my team to do the same in San Benito CISD. In taking the necessary steps in order to balance our district’s budget, we must make every effort to make decisions that are being done in the best interest of students, and as such, we must carefully evaluate the way we do business from this point on. And, you have my word that I will propose a balanced budget to the school board come August.
Fact #2
In last week’s article I presented a five-year fund balance trend analysis. This week, I illustrated our projected fund balance based on remaining estimated revenues and expenditures for 2014-15. In other words, this is how much money we will have in the bank at the end of the 2014-15 fiscal year (8/31/15) and when we open our 2015-16 fiscal year (9/1/15).
It takes approximately $8 million to run SBCISD every month. The projected $4.3 million fund balance places the district in an even greater financial danger. The Texas Education Agency recommends school districts maintain 2 to 3 months of operating expenses. As it stands today, we are projected to have only half a month of operating expenses on 8/31/15. Note the additional decline in our projected fund balance below.
Taxpayers, I share these stark facts because you must be completely aware of the need for urgency to swiftly improve our financial situation. I have proposed to trustees early solutions that will remedy our fiscal crisis, both in the short and long term. In the coming days, we will weigh these solutions very carefully. I greatly appreciate the board’s ongoing support and response to this urgency.
Fact #3
Why did our fund balance fall so sharply last year? And why is it still declining? Our decline in fund balance is primarily due to our self-funded health insurance program, which is simply not sustainable as presently designed.
Due to our financially lopsided health plan, the district had to bail out our self-funded health insurance to the tune of $6.8 million in 2013-14. Based on current projections, we will need at least another $2.5 million bailout from our fund balance this year. Hence, another large fund balance decline this year.
Should we choose to continue the present course, our district, in all likelihood, will be at risk of running out of funds in 2015-16. The graph below trends our health care expenditures over the last six years. Clearly, healthcare costs continue to escalate and our district simply can’t keep pace. This year’s amount is only a projection.
I will be presenting viable options to trustees that will enable our district to get out of the health care business, including the option of shifting over to the Texas Teacher Retirement System (TRS) insurance plan. The TRS state health insurance plan covers Texas public schools, universities, and charter schools. In 2014-15, out of 1,029 school districts, approximately 970 currently participate in the TRS insurance program.
Taxpayers, obviously other districts have figured out that their core business as a school district is teaching and learning–not health insurance. Shifting over to TRS health insurance makes smart business sense for our district. Remember, the critical importance of a balanced budget. This solution provides a mechanism to help ensure it happens, and equally important, helps us get back on the road to fiscal recovery.
Fact #4
Per the state’s school financial accountability rating system, known as the School Financial Integrity Rating System of Texas (FIRST), a district our size should maintain a staff to student ratio of no less than 7.0. This would mean a total staff of 1,569. At the start of 2014-15, the district had 1,716 employees.
The chart below illustrates our staffing and enrollment patterns. It is important to note that between the 2012-13 and 2014-15 school years, the district added a staggering 100 new positions while losing 186 students over the same period. This means for every student the district lost during this time frame, it added .54 staff. This lack of strategic staffing cost the district approximately $3.0 million during this span.
Solution
The good news is that we are on the road to recovery. We will be introducing a plan where our resources are spent strategically, thus allowing us to keep our staffing needs in line with our student enrollment counts. We are taking measures to carefully evaluate our hiring practices and determine our current staffing needs. For example, as positions become vacant, we are choosing not to fill those positions. It’s important to remind the community that as of January 5, we have already realized a savings totaling over $1,047,690 due to resignations, retirements and separation of personnel. Additionally, I am leading our team in preparation of responsible staffing solutions, including reductions across all departments.
Someone once said, “The truth is heavy, therefore few care to carry it.” While heavy, I ask that you join me in carrying this truth. As taxpayers, the district owes you accountability. You have my oath that I will work tirelessly to create a financial system that is both effective and efficient for those we serve first: our students. This will take careful planning, unwavering commitment and willing sacrifice from trustees, faculty and staff, and the broader community. I trust we will stand together in the truth. Our children are counting on us.
Sincerely yours,
Dr. Marc A. Puig
13 comments
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I think most people understand the dire straits that SB is in — most of which were created by the financial mismanagement of previous boards and administration. At some point at time,SBCISD will need to face the realities of the financial situation they are in. While the city is landlocked and can’t expand and grow its revenue base in that manner, taxes will need to rise in order to meet the shortfall. I wonder how many SBCISD teachers actually live in SB… SBCISD continues have huge overhead in terms of administration and non-teaching personnel — that’s not changing anytime soon.
Unfortunately in this case, the children suffer, which has been the precedent for many years (or roughly since the HIspanic population became the majority). The children are not oppressed (as some editorials have opined) but rather they lack the resources to truly succeed. Roughly 50% of the people in SB fall under the guidelines for poverty so that means that if these students get into college (and that’s a big if), they will have their education paid. The question remains whether SB students are prepared for higher education — my guess is that they are not. Yes, I know that’s a gross generalization, but my guess is that top 10% will do fine, but the remainder will struggle. That clearly is not right!
All children attending a SBCISD school deserve what’s best and what is fair for them. Recently, SBCISD Admin has put a stop to the hiring of new personnel but has not put a stop the resigning/letting going of/firing of current/old personnel. Yesterday, my two children both made visits to their school nurse – for their own personal reasons. One of my girls was able to see the nurse; the other was not. Why? Because I have a daughter who attends a school that has a nurse and I have another daughter who attends a school that does not have a nurse. I looked into this matter and I would be ok with “the old nurse quit and a new one will be hired soon” but that wasn’t the answer I received. The answer I received was “well a new nurse hasn’t been hired and will not be this year, according to administration. No new people will be hired for the remainder of the school year.”
In my opinion, all students should have the same opportunity, fairness, and access. SBCISD is not providing this. As a taxpayer, Its crazy to think that two taxpayers can pay the exact same amount of taxes but may not be getting the same services in return from the SBCISD – and that’s just flat out wrong.
My point: If one school has a nurse, all schools should have a nurse. If one school has bus transportation, all schools should have bus transportation. And so on and so forth………….
Tuesday night the Board and the Superintendent are going to vote the district into the TRS-Active Care State Plan that no teachers want. The fund is bankrupt and once voted in the District can never get out.
TRS plan rates go up every year and the plan benefits are not near as good.
This move will not save the school district money and we will lose the great insurance plans we have.
TSTA testimony on TRS-Care and ActiveCare:
“TSTA understands there are systemic funding problems with ActiveCare and TRS Care. We would like to share with you the problems being faced every day by active teachers and retirees.
“Several of our members have shared stories about the ways healthcare costs affect them. Many teachers are delaying necessary surgeries because they cannot cover the medical costs. Some teachers are delaying having children because of the costs associated with the birth of a child. And we have numerous members who are considering leaving the profession altogether. Indeed, many have left the profession over rising health care costs.
“Currently, a teacher seeking to cover his or her entire family under ActiveCare 2 must pay a monthly premium of over $1,300 per month – more than most of our members pay for their mortgage – if they can even save enough to buy their own home.
“On a monthly basis, many retirees have to choose between paying their electric bill or having insurance that allows them to purchase prescription drugs that are vital to their well-being. Can you imagine a more excruciating, life-threatening dilemma for an elderly teacher who has given his or her entire life to serve the schoolchildren of the State of Texas?
Thank you for this “scoop” and “truth” Mr. Super. Did anyone at the SB News even verify these budget figures are accurate?
First of all, I do want to thank Dr. Puig on showing us how bad our budget is here at SBCISD. This shows to all of us that the board made a poor decision in authorizing Anna Cruz’s program and what a huge financial mistake it was. I can go on and on and talk about the budget mistakes our board has made. But the real question is for Dr. Puig, and in what areas are we over-staffed at the district. I’m asking because our kids don’t need fewer teachers in the classroom and larger class sizes. School districts count many staff personnel as teachers when they don’t actually have any real classes so I’m asking where are we over-staffed. I’m asking Dr. Puig as an act of solidarity that he not take his $5,000.00 pay raise in June to show that he cares about the budget. Also, it will show the staff here that if the district can’t give everyone a pay raise, then he doesn’t take one either. Also, Dr. Puig, I hope you will be staying at our district for years to come and your not using SB as a stepping-stone for a bigger and better job months from now.
Yes,CAVA Supporter,when you buy things you don’t have money to pay for,thats what happens.Its especially sad when done by educated adults,in positions of power,their suppose to put people like that in jail.
I’m seeing a lot of RED INK on the charts and graphs.
You read the writing on the wall.
Thank-you Dr. Puig for the analysis/information. Good to know.
Rosalinda G. Garcia
How many times did you use the old liberal administrator cliché of “our children, the children”? Too many. What the good doctor just said San Benito is that a bond issue and higher taxes are just around the corner. Aint we lucky to have you here??
Dr.Puig.before you got here,there had been,to my knowledge,no mention of a short fall of the budget.What were all these people that were in place doing ? How could they miss something as important as the money to operate,the board,the superintendent,all of them asleep at the wheel,some of you people answer up !
Dr. Puig you seemed to have nailed down the root cause of the budget problem,in short time,good work,It’s most unfortunate that you have inherited such a challenged group as our board and previous administators,I think this would be the appropriate term to use for that group.
I have one suggestion,and it maynot be practical.Why does the district even need to offer a health care plan.Those of us in private industry,or working for ourselves are forced to make our own arrangements for health care insurance,nobody to set it up and shop it for us,why can’t the staff and teachers do the same.Here again this is another perk for faculty,does nothing to benefit the students,Our president has set up O’bama care the staff and faculty should have to use this just as the rest of the population is being forced to.Some people might say that it will lessen the quality of the faculty that teach here,I don’t think you would see a difference,
Juan, I sincerely believe that a teacher must have treated you horribly a long time ago as that would be a logical reason for the animosity and hatred you have against teachers. You bash anyone who wants a pay raise or health insurance because we’re not looking out for the SB kids. You ask us to take care of your kids but you don’t want us to take care of own kids, which might include higher wages, insurance or SB clinic. You need to understand that you’re forcing many good teachers and staff members to leave our district because they want to take care of their own family, too. I am not sure why you bash us for trying to provide for our own kids. You’re right Juan, you won’t see a difference…………. Until it’s too late.
Fact #3. Once a district joins TRS care they can never get out of it. The self insurance program over the last 12 years had saved the district some 25 millions dollars over a fully funded program. The school district clinic had been a great plus to employees. It was only when the four infamous board members started messing and micromanaging that the problems started. A self funded program administered correctly can be a very positive benefit.
Fact # 4, The distirct by vote of the trustees made all the sub-security full time district employees. Some 80 sub employees were made full time to comply with Obama insurance requirements. Subtract those 80 subs and the employee count would be 1636 which would be lower than the year before.
Fact #4 Most of those subs work full time hours consistently every week. It’s only fair they were given the availability of insurance. It’s the least the district could do for them since we hold down wages of support staff.
Fact #5 San Benito CISD is overstaffed with ADMINISTRATORS at main office. We have directors/coordinators who only have one job to do when in most districts directors/administrators usually have 2/3 tasks in other districts. So it would save the district money to non-renew certain administrators instead of firing a whole bunch of support staff workers.