The Economy and Kansas School Districts

The following is from Mark Tallman at the Kansas Association of School Boards. It outlines the economy and how it will impact school districts in Kansas. The point being that this is not the time to stick our heads in the sand. School districts need Greenbush and our business partners more than ever to help them be more cost-effective and efficient so they can squeeze every ounce of value from their limited dollars.

State revenue projections plummet

The consensus revenue estimating group reduced projected revenues to the State General Fund by $230 million in the current fiscal year (2008-09) when it met Tuesday. It also projected no increase in revenues for FY 2010, far short of the historic average of four percent growth. Revenue projections could be cut even further in April if the national economy continues to slump.

School districts should expect the possibility of cuts in base funding and other state aid programs, including the $59 base budget increase already approved for next year, as the state faces a massive revenue shortfall.

Under the budget approved at the end of the 2008 legislative session, the state expected to begin FY 2009 with a balance of $533 million and receive about $6 billion in revenues during the year. The Legislature approved spending $6.4 billion, which would leave a state general fund balance of $118 million. But tax receipts for FY 2008 were nearly $60 million below expectations. The new projected drop in revenues, combined with other budget changes, means the state now faces a shortfall of $137 million in the current year.

That could increase later this week, when the Department of Education, Legislative Research Department and Budget Division meet to consider changes in school finance estimates. For example, the number of students qualifying for free lunch is expected to increase, which will require more funding for at-risk weighting. When a student qualifies for free lunch, the funding for the child increases between 45 and 50 percent due to the weighting.

Governor Kathleen Sebelius, who is preparing her budget recommendations for the upcoming Legislature, has already asked state agencies for two percent budget cuts, which would save over $40 million this year. The state also expects to begin receiving funding for expanded gaming activities in the state, and has the ability to make certain shifts in spending to manage the budget.

But an even bigger problem will face the Governor and Legislature in the 2010 budget. The Legislative Fiscal Staff estimates that the Legislature is already committed to over $6.57 billion in spending for FY 2010, including the $59 base increase, social service caseloads (which are expected to increase in a bad economy), funding for the Kansas Public Employees Retirement System (which will be affected by the stock market collapse), restoration of aid to cities and counties to reduce property taxes, deferred maintenance at the state universities, and state employee pay plan adjustments.

If tax receipts do not increase in FY 2010 from the lowered base of FY 2009, projected expenditures would exceed projected revenues by nearly $800 million. To put that amount in context, the additional funding school districts have received over the past three years is approximately $500 million.

Most of the projected revenue drop is in individual income taxes, due to expected losses in capital gains earnings. However, if unemployment increases, income tax revenue from wages will also decline. Reduced income and access to borrowing also affects purchases and therefore sales tax receipts. State receipts have also been reduced by tax cuts; transferring sales tax money to the transportation department and other programs; and the federal stimulus package which reduced business taxes.

Faced with a similar budget crisis in 2002, the Legislature cut spending in many areas but also passed a $252 million tax increase to avoid deeper cuts in programs, including education. Another possibility is that the new administration of Barack Obama will seek a second economic stimulus package that would include aid to states and local governments.

Mark Tallman
Assistant Executive Director/Advocacy
Kansas Association of School Boards
mtallman@kasb.org

The Daily Motivator

The most effective form of leadership is born out of the
sincere desire and proven ability to make a positive
contribution. Those who lead best are those for whom
leadership itself is not the primary aim.

True leadership is not embodied in a position or title. True
leadership arises from an exemplary life of making positive,
valuable contributions that inspire others to do the same.

The most successful leaders have no interest in telling
others what to do. Successful leaders are those who promote
and support conditions in which each person can act with
effectiveness and experience fulfillment in his or her own
special way.

Great leaders are not those who claim to have all the
answers or to solve every problem. Great leaders lead by
example rather than by proclamation.

To be a leader, be a shining example. Do precisely that
which you would lead others to do, and do it spectacularly.

Leadership at its best enlarges upon the sincere and
productive efforts of the leader. Make those efforts the
best they can be, and they'll result in true, effective
leadership.

-Ralph Marston

Greenbush Business Partners Meeting Oct. 22

On Oct. 22, several Greenbush business partners met at Greenbush's Topeka office. The goal of the meeting was for partners to learn more about the products and services that each provide. It was also a chance to outline an action plan for how Greenbush and our partners can better serve school districts in Kansas. The following Greenbush business partners were represented:

1. Advance Catastrophe Technologies (ACT)
2. Simplified Online Communication System (SOCS)
3. TextCaster
4. The MASTER Teacher
5. Custom Energy
6. SchoolReach
7. SchoolDistrictU
8. Patron Insight
9. Asset Services

Outcomes of the meeting included:

• exchanging contact information with each partner via a web-based tool
  
• organize more direct marketing that is specific to each partner
• partners will submit timely information for e-Connection newsletters
• Brad will provide partners with a grid that articulates the alignment of programs, products, and services to federal and state regulations, funding, grants etc.
• facilitate a "Greenbush Business Partner Showcase" in spring 2009
• partners may work with The MASTER Teacher to publish content in their publications

Thank you to those who attended.
Brad

Marketing Initiative

One of Greenbush's business partners, SchoolReach, contacted me two weeks ago with an idea for a marketing initiative. We worked collaboratively with SchoolReach to create a special sign-up deal for school districts who are non current users of the SchoolReach instant parent contact system.

The point here is, working together as partners, we were able to offer added value to school districts served by Greenbush. Plus, we shared the marketing costs and responsibilities to capitalize on each party's capabilities.

I encourage any Greenbush business partner or AEPA vendor to contact me to inquire about how to orchestrate a similar marketing initiative.

New Kansas AEPA Brochure Coming Soon!

In our continuing efforts to create awareness of AEPA vendors, products, and services available to school districts in Kansas, we are creating a new marketing brochure for both print (bi-fold) and e-marketing.

Kansas AEPA Vendors, please review your section in the draft brochure to ensure the contact information is up-to-date and accurate. Please e-mail corrections to me by Oct. 10. You may download a pdf version of the brochure from the Kansas AEPA web page: CLICK HERE then click on "Draft Kansas AEPA Brochure"

Please feel free to contact me with any questions or suggestions you may have. Thank you for partnering with Greenbush to serve the needs of school districts in Kansas.

Regards,
Brad

Keep an Eye on Growing Kansas School Districts

A recent article in the Topeka Capital Journal highlighted the growth of the Seaman USD 345 school district in Topeka, Kan: CLICK HERE to read the article.

While sometimes it is easy to focus on schools experiencing declining enrollment, the schools that are experiencing growth have their own unique needs that can possibly be fulfilled by business partners of Greenbush.

I would encourage you to follow Kansas school trends via the Topeka Capital Journal or other media sources. Make a phone call to the school superintendent to ask how your bag of educational resources may be of help to them. Most superintendents are open to soft inquiries when the message is, "how can I help your school district?"

Have a great day!
Brad

Communication with Superintendents

Greenbush has started a new monthly e-newsletter for school superintendents called, "Greenbush e-Connection." The goal of this e-newsletter is to provide superintendents with timely information that is vital to them. It is NOT a commercial or marketing venture for Greenbush, simply a way to increase both the quantity and quality of information for school superintendents.

Please email me and I will email a copy of our first edition to you.

As you come across information in your specific product/service categories please email pertinant, timely information to me.