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Tag: West Bend School Board

West Bend School Board Meets Tonight

by | 0717, 26 Nov 1818 | , | 0 Comments

It’s a little hard to keep up, but there are three consecutive meetings of the West Bend School Board tonight for the purpose of buying land and considering a referendum for next year. Because, you know, fancy new buildings and more real estate will improve education *smh*

The Washington County Insider did us the favor of sorting through the announcements and summarizing them for us. Attend if you can. These are open to the public and all of the people who want to spend your money will be there.

NOTE that the purchase of the property requires the approval of the electors. The electors are any adult residents of the district, so show up and VOTE. Again, the people who want to spend the money will be there. If you would rather not, show up and vote in the SECOND meeting at 6:15.

Nov. 26, 2018 – West Bend, WI – Tonight, Monday, Nov. 26 the West Bend School Board will hold three meetings. Agenda items include a proposed April 2019 referendum and land purchase in Jackson.

[…]

 

The first meeting Nov. 26 is a Board Work Session at 5:15 p.m.  The meeting will be held at the Education Service Center, 735 S. Main Street, West Bend
5:15 pm, Board Room.  The meeting is open to the public.

[…]

 

The second meeting Nov. 26 is in the Education Service Center, 735 S. Main Street, West Bend 6:15 pm, Board Room Meeting of Electors  The meeting is open to the public.
[…]
The final meeting on Monday is the Regular Board of Education Meeting Monday, Nov. 26, 2018 Location: Education Service Center, 735 S. Main Street, West Bend  Time: 6:30 p.m., Board Room. The meeting is open to the public.
Note: Action Items !. 6:58 Resolution to approve the purchase of certain real property.
Category Action Items Subject  6:58 Resolution to approve the purchase of certain real property

West Bend School Board to Buy More Property

by | 2219, 24 Nov 1818 | , | 4 Comments

Wow. I see that the West Bend School Board is up to its usual tricks. They gave notice yesterday – the Friday after Thanksgiving – for a special meeting on Monday to vote on spending $750,000 on real estate in Jackson for a possible future school. This is despite presiding over a district with declining enrollment and $130 million in debt. Here’s the rationale:

Regardless of whether the board decides to have a referendum in spring of 2019, the property to the north of our vacant land would make our property a much better site for an elementary building. Furthermore, the purchase of this property would enable the Village of Jackson to move ahead with their plans.

It’s cute how they pretend that they might not go to referendum in spring.

Anyway, be sure to attend if you’re in town. It’s your only chance to weigh in.

The final meeting on Monday is the Regular Board of Education Meeting Monday, Nov. 26, 2018 Location: Education Service Center, 735 S. Main Street, West Bend  Time: 6:30 p.m., Board Room. The meeting is open to the public.
Note: Action Items !. 6:58 Resolution to approve the purchase of certain real property.

West Bend School Board Considers Buying Property

by | 0657, 12 Nov 1818 | , | 3 Comments

The West Bend School Board will meet tonight to discuss the potential purchase of property for a new Jackson Elementary School.

Nov. 12, 2018 – West Bend, WI – During tonight’s Monday meeting, Nov. 12, of the West Bend School Board a discussion will be held on the “Potential land purchase in Jackson.”

According to the district website:

Topic and Background:

In approximately 2009 the West Bend School District purchased a 6.38 acre parcel of land on Jackson Dr. in the Village of Jackson in anticipation of reconstructing the existing Jackson Elementary. Since the purchased property was small for an elementary school, discussions occurred at the time between the district and village about securing additional land to the north that was owned by the Village of Jackson.

In recognition that the district was moving toward the building a new Jackson Elementary on the new site, the Jackson DPW moved to a new site and the Village began searching for a property on which to construct a new safety building to house the police and fire departments.

In early 2017, the district and the village agreed to enter into a Memorandum of Understanding to have appraisals done on the existing Jackson Elementary, Fire Department and DPW properties. Each party paid for the appraisal of their individual properties and agreed to exchange the documents. Each party recognized the importance of securing the additional property for any potential new school.

Within the last several weeks the Village has put in an offer on the site for the new safety building. The offer has been accepted and closing is set for mid – December. The village offer to purchase is contingent upon the sale of the existing DPW and Fire Department parcels.

Since a new safety building would not be complete prior to the sale of the property, the district would lease the fire department back to the village for a minimal sum. The village would be responsible for all maintenance and utilities associated with the building.

Rationale:

Regardless of whether the board decides to have a referendum in spring of 2019, the property to the north of our vacant land would make our property a much better site for an elementary building. Furthermore, the purchase of this property would enable the Village of Jackson to move ahead with their plans.

Budget:

Total purchase price $750,000.00.

More at the Washington County Insider.

So the School Board wants to buy property for a new building that they don’t have funding for in a district that has declining enrollment when they are already $130 million is debt.

Neat.

Live Broadcast of West Bend School Board

by | 1838, 8 Oct 1818 | , | 2 Comments

For some reason, the live stream of meetings of the West Bend School Board have not worked for months due to “technical difficulties.” I know… in an age when I can live stream anything in 3 seconds with my phone, that excuse sounds ridiculous. Thankfully, the Washington County Insider is on the case!

You can watch the live stream here.

They are going to talk about the union contract being at an impasse tonight. They are already late, so there’s no telling when it will come up.

UPDATE: Sure enough, the school board declared an impasse after two meetings with the union and imposed the district’s last offer – a blanket 2% base increase including those at the top of the scale. Given the lack of bleating from the usual union folks, it seems that they are pretty happy with it.

Once again, this School Board has failed to utilize their power to create a compensation structure that rewards better student outcomes and the teachers who generate them. In the West Bend School District, every teacher is treated the same, so everyone will trend to the middle, or just good enough to not get fired. Mediocrity throughout.

West Bend Teacher Union Negotiations at an Impasse

by | 1008, 6 Oct 1818 | , | 1 Comment

From the agenda for Monday’s school board meeting:

Recommended Action
I move to declare negotiations with the WBEA for 2017-2018 and 2018-2019 at impasse, and to implement the District’s final proposal for both years.

According to the law, if the two parties can’t agree, the school board can declare the negotiations at an impasse. This then allows the board to impose their last best offer.

What I find odd is the timing. When the School Board held the annual meeting less than three weeks ago, they specifically noted that they had not yet begun negotiations with the union. It was a point of contention because the proposed budget had about a million dollars in compensation increases, but no information on how that money was to be allocated.

Now, less than three week later, the board has conducted exhaustive negotiations for last year’s and this year’s compensation plans to the point that they are at an impasse? It strikes me that either the negotiating team at the district has a hair trigger at declaring an impasse, which would be unfair to teachers, or that this is a predetermined tactic because the school district is giving the teachers everything they want anyway. By declaring an impasse, the union can continue the fiction of victimhood.

Or I suppose a third scenario could be that the district was already conducting negotiations at the time of the annual meeting and simply lied about it. I don’t think that’s likely.

West Bend Annual Meeting, Budget, and Tax Levy

by | 1114, 15 Sep 1818 | , | 0 Comments

This post is going to be a little long, so strap yourself in. If you live in the West Bend School District, you’ll want to read it. The rest of y’all should find a good college football game to watch.

On Monday, the voters of the West Bend School District are invited to attend the Annual Meeting of Electors. This is an annual meeting where, theoretically, the voters approve some of the big ticket items like the tax levy and budget. In reality, all of the votes are non-binding, so the School Board can still do whatever they want. Still, it is an opportunity for voters to show up and have their voices heard.

On the agenda this year is:

7. Consideration of Proposed Resolutions

a. Resolution No. 1 – Tax Levy

b. Resolution No. 2 – Disposal of District Property

c. Resolution No. 3 – Board Member Compensation

d. Resolution No. 4 – 2019-20 Annual Meeting Date

The only thing we have any information on is the proposed budget and tax levy, so the voters will be walking in blind to whatever the resolutions are about board member compensation and the disposal of district property. We’re going to take a deeper look at the budget and tax levy, but first, let’s discuss the process a little.

In years past, the West Bend School Board began its budget process in the spring. If I remember correctly (I’m sure someone will correct me if I’m wrong), we usually got a preliminary budget in the April/May time frame. That high-level preliminary budget was posted on the district web site and the people had some time with it.

This year, the first appearance of a preliminary budget from the school district that I saw was last Tuesday morning – after the Monday night board meeting.  Perhaps it was posted Monday night. But now the Electors are being asked to vote on it a week later. One. Week. That’s all the voters get to read it and understand it. There hasn’t been any time for the media or interested parties to ask questions. There hasn’t even been another board meeting where citizens could voice their opinions on it. There is really no excuse for this kind of opaqueness from the West Bend School Board. They have had this information for months, but failed to be transparent about it. Their lack of transparency is not incompetence. It is willful.

That being said, let’s look at the budget. As we get into it, we must remember the context of this budget. The West Bend School Board just postponed action on a $85 million referendum. Budgets are where we define our priorities. There is always an unlimited list of needs/wants (the distinction between the two often being in the eye of the beholder) and a limited amount of money to pay for it. The budget is where you have to prioritize that list.

 

There are two versions of the West Bend School District’s Preliminary Budget. Here is the summary document that is being provided for the meeting on Monday. Here is a slightly more detailed version that was presented at the School Board meeting last week. Neither version is nearly as detailed as what other districts, like Slinger, provides. Again… transparency…

Let’s start with the revenue side of the budget. There are two primary sources of revenue for a Wisconsin school district – the local property tax levy and state aid. The West Bend School District is facing a demographic and societal shift that is causing a decline in enrollment for the foreseeable future. The estimates range between a 10% and 20% decline in enrollment in the next 10 years. This is a significant impact on the state aid that the district receives because it is based on enrollment. Also, enrollment affects the property tax levy limit for the district. In short, the West Bend School District is facing a sustained period of declining revenue. In the preliminary budget (focusing on the operating budget and not the special parts), we see this manifest in a projected $233,405 decrease in revenue.

That decrease in overall revenue is despite a property tax hike. The School District wants to increase the property tax levy by $928,249 – the maximum amount allowed by law. Most of this is offset by a decrease in the levy due to some debt service coming off the books, so the impact will be minimal. But taxpayers could be enjoying a rare tax decrease if not for the School Board’s desire to tax to the max.

In light of that fact, let’s take a closer look at the spending side of the budget. Overall, the preliminary budget proposes a $1.3 million spending increase. You’re reading that right. The preliminary budget has a structural $1.4 million deficit.

The School District must have a balanced budget, so they are raiding their reserve fund to fill the gap. Superintendent Don Kirkegard acknowledges that this is not sustainable and he will be working to bend the district’s cost into the revenue number next year. I cut him some slack because he has only been on the job since July and was handed this budget. Also, he comes from another state and it takes a little time to learn the Wisconsin Way of school budgeting. This budget is the product of the interim Superintendent, staff, and most of all, the School Board.

What is driving the spending increase? Almost all of it is due to a planned compensation increase for the teaching staff. Although salary negotiations are still underway, this budget includes a 2.1% base salary increase. That is the maximum that the School Board would have to give under Act 10. That amounts to a $929,853 compensation increase. That umber is a little misleading because the budget number includes benefits, salary, and headcount fluctuations. But based on the commentary at the school board meeting last week, that number is about right. They are planning roughly a $900k salary increase.

The other increases are scattered around the budget. It is a little hard to tease them out because the district is also reallocating a lot of expenses. According to the Superintendent, they are working on reallocating expenses to the building level so that they can have better visibility to where the expenses are actually being spent. That’s a good thing, but it makes year-to-year trending data difficult.

The story of this budget is not really what it does, but what it doesn’t do. The West Bend School Board is facing declining enrollment and, consequently, declining revenue. Next year they are planning to ask the taxpayers to dig deeper into their family budgets and pay more for bigger, newer facilities. This budget is the School Board’s statement of priorities before asking the taxpayers for more money and they chose to kick the can down the road another year. They are choosing to not make any hard decisions nor demonstrate that they will be good stewards if the taxpayers give them almost the equivalent of an entire year’s budget to spend all at once.

Here are just a couple things this budget does not do:

Maintenance. Many of the facilities needs that are driving the perceived need for a referendum are due to years of poor maintenance. Jackson Elementary is old and falling apart, they tell us. The High School building needs serious renovations and repairs, we’re told. I defy anyone to look at the preliminary budget and determine what the school district spends to maintain their facilities. There isn’t a line item for it. According to the Superintendent, the large, capital projects like roof replacements and such are covered by the Capital Projects Fund and is about $2.3 million. More routing maintenance like carpet replacements, door repairs, fixture replacements, light bulbs, etc. are kind of tucked into the “other support services” or “central services” budget items. But those line items blend a lot of “catch all” expenses.

It is safe to say, however, that despite these pressing needs that are fueling a referendum discussion, the budget makes no serious effort to spend more on maintenance.

I tried to find some good benchmarks for what schools should spend on maintenance, but they are hard to come by. This data from the Building Owners and Managers Association says that for office space (roughly equivalent), people spend about $8.07 per square foot for annual operating expenses. That number includes some things like security, administration, etc. that are not really pertinent in a school setting. If we just include repairs, maintenance, cleaning, etc., it’s about $4 per square foot per year. The West Bend School District has 1,141,656 sq. feet of building space – not including grounds, sports fields, parking lots, etc. It is reasonable to expect that the district needs to spend $4 to $4.5 million per year just to keep their facilities reasonable cleaned and maintained. I don’t see anything near that much in the budget even as I add up the line items.

This points to a trend of School Districts intentionally under-funding maintenance, allowing facilities to decline into disrepair, and then pushing for a referendum to make up for their neglect. This budget looks like it will continue that trend.

Labor Costs. Without a doubt, labor costs are the largest expense in any school district budget. If the School Board is ever going to control costs and bring them in line with revenue projections, they have to control the cost of labor. There are only a few ways to do that. They can cut overall compensation – salaries and benefits. They can reduce the number of employees. Or they can force employee churn to create a younger, cheaper workforce.

At some point, the district needs to reduce the number of employees. There are fewer and fewer kids to teach. Therefore, there will need to be fewer and fewer teachers, administrators, and support staff to serve those kids. This needs to be done intelligently and carefully, but it needs to be done.

The School Board and this budget fail to take advantage of Act 10 to control the overall compensation costs for the employees. Employees still have a sweetheart deal on benefits. The School Board is assuming a maximum base salary increase. The School Board has not implemented merit pay or other performance-driven compensation models. They haven’t done much of anything. The compensation package for West Bend School District employees looks much like it could have in 1999 or 2005.

Once again, this budget just kicks the can down the road and fails to do anything about rising labor costs in the face of declining revenue.

The preliminary budget for the West Bend School District sends a very clear message to the citizens of the district. Despite virulent protestations about needing tens of millions of dollars in a referendum to pay for critical facilities, the School Board intends to just keep doing the same thing as if there isn’t any need at all. They are not making any hard choices or shifting any additional spending to address those needs. They are also not addressing the structural funding issues that are already impacting the district’s revenue. The School Board is planning to ask the taxpayers to dig deeper into their family budgets and give up their own priorities, but the School Board is refusing to dig deeper into their own budget. Instead, they are doing what far too many school boards do: tax to the max; give employees as much of an increase as possible; starve facilities; refuse to innovate; keep doing everything the same way and wondering why you keep getting the same results.

I will believe that there is a crisis in the West Bend School District when they begin acting like it. This budget sends the message that the School Board thinks everything is fine the way it is.

West Bend Referendum Fight is Not Over

by | 0737, 21 Aug 1818 | , | 0 Comments

The citizens of West Bend received a reprieve last night when the West Bend School Board decided to suspend the referendum effort. “Suspend” is the key word. At the meeting, School Board President Joel Ongert made it clear that he wants to put a referendum on the April or possibly next November ballot. It is worth noting that those elections also historically have much lower turnout. That makes it easier for the referendum to pass (if you’d like me to explain this, I will, but I think y’all get it).

Ongert also made a comment that he thought that the needs at the high schools warranted $60 million! In the current referendum proposal, they are asking for $31 million for the high schools. Ongert wants to spend so. much. more.

Over the next few months as the citizens of the West Bend School District and their School Board consider the prospect of a referendum, we should keep some hard numbers in mind.

$215 million. That is how much the taxpayers will be obligated to pay back if the referendum being considered is approved. The district already owes about $130 million due to the passage of previous referenda. If the referendum passes, it will bring that total to about $215 million in owed interest and principal.

$2,125. There are about 40,000 adults who live in the West Bend School District. If the $50 million referendum being considered passes, the share for each adult is $2,125. Each adult’s share of the total $215 million debt would be about $5,200.

$5.3 million. The taxpayers currently spend about $5.3 million per year on paying down debt. That is $5.3 million that is not spent on educating kids. It is being spent on paying off buildings. That number will increase substantially if the referendum being considered passes.

20. Under the proposal outlined by Baird for the School Board, it will take 20 years to pay off new referendum debt. On the payment schedule presented by Baird at the August 13th school board meeting, the taxpayers will paying only the interest payments for the first nine years. The taxpayers will not pay down a single dollar of the principal until the tenth year.

2.7%. Despite having the authority under Act 10 to control labor expenses, employees of the West Bend School District can still get a family health insurance plan for as little as $49 per month. That is 2.7% of the total cost of the plan. The taxpayers pay the remaining 97.3%.

307. Using the Kindergarten Trend Projection Model, which extrapolates kindergarten enrollment trends to forecast future enrollment, there will be 307 kids in Jackson Elementary in nine years. That compares to the 371 kids who were in the school last year and the 535 kids in the same building at the most recent peak in 2010. That is a 43% decline in student population in the Jackson Elementary building, but also includes the reconfiguration of grades that occurred in 2014.

5,289. Using the same projection model, the entire West Bend School District will have an enrollment of 5,289 kids in the 2027-2028 school year. That compares to the 6,634 kids in the last school year and 6,843 kids in the district in the most recent peak year of 2009. That is a 20% decline in enrollment over the next decade.

Different project models give slightly different numbers, but the declining enrollment matches the trend that the school district has seen in recent years. Due to generally lower birth rates, open enrollment, the Wisconsin Parental Choice Program, and demographic shifts, the West Bend School District is seeing the same declining enrollment as many other Wisconsin school districts.

21%. In the most recent open enrollment figures, 21% of the kids who open enrolled out of the West Bend School District left to attend a virtual school. While the West Bend School Board wants to invest in buildings, families are seeking out modern ways to get a quality education.

20. The world of education is not immune from the societal and technological transformations taking place around us. Educational delivery methods now include online and hybrid learning, collaboration with industries, augmented reality, and so much more. The West Bend School Board is asking to spend $85 million on a 20th century education model.

Zero. If the voters approve allowing the West Bend School Board to dump tens of millions of dollars into buildings, they can expect zero improvements in educational outcomes. It has been proven time and time again that once the basic safety and space needs for school buildings are met, spending more on buildings does not result in better education.

For recent evidence, look at the test scores and graduation rates in the West Bend School District since the other school building referendums were passed. According to DPI data, all of the results are flat or declining. The new Badger and renovated Silverbrook schools look fantastic, but they did not make any kids smarter. That is why the school board has wisely not even attempted to claim that it will improve education in the district.

There are a lot of things that the West Bend School Board could do to try to improve education for the children under their care. Dumping money into fancy buildings is not one of them.

West Bend School Board Suspends Referendum Effort

by | 2100, 20 Aug 1818 | , | 0 Comments

Huzzah, huzzah… the West Bend School Board came to its senses and decided against putting a referendum on the ballot in November. They haven’t abandoned the effort yet, but at least they are pumping the brakes for a bit. The Washington County Insider has video of the discussion and details from the meeting. Here are some highlights:

“We have until next Tuesday to tell the county clerk what our intentions are,” he said.  “Are we going to a referendum in November and potential questions and how do we want it to look.” Board member Chris Zwygart spoke first and set the tone for the rest of the meeting.  “I’m not sure we’re ready to move forward. The board has a number questions,” said Zwygart.

Board member Ken Schmidt said he had doubts. “I question need and want,” said Schmidt.  “Those are two questions I have. Some things I see as needs with safety and that is a big need but here again I really have some questions about right sizing. Those are the two biggies.”

Schmidt also expressed concern about the cost to taxpayers in the future. “There’s no guarantee with a phenomenal economy. I’m a realist and there are cycles. I’ve seen several in my lifetime but I have sincere reservations.”

[…]

A couple of leaders from the West Bend School Board spoke after the meeting.

After the meeting Zwygart said as a person, “We have unanswered questions and limited time between now and the time of the election (Nov. 6, 2018) that just does not set us up for success as it relates to transparency with the voters and so I’m pleased with the decision.”

In particular, hats off to board members Chris Zwygart and Ken Schmidt for being good stewards of the taxpayers’ interests. Board members Joel Ongert and Tiffany Larson still seem hell bent on dumping tens of millions of dollars on buildings. This isn’t over. The debate continues…

West Bend School Board Calls Special Meeting to Put Referendum on Ballot

by | 0754, 17 Aug 1818 | , | 2 Comments

As usual with this board… public notice posted on the business day before the meeting. Apparently, they only anticipate 3 minutes of public participation.

NOTICE OF SPECIAL BOARD OF EDUCATION MEETING

Education Service Center

735 S. Main Street, West Bend

Board Room

August 20, 2018 6:00 pm

NOTICE TO THE PUBLIC AUDIENCE: A) At the regular and special meetings of the Board of Education, the President of the Board will honor requests of the public to speak to any item prior to the President’s closing of public participation. Persons requesting to be heard shall register their written requests to the Board President and identify themselves by name and address. Based on the number of requests, the President may set a time limit for all persons to speak. Persons wishing to speak a second time must register a second time. A person may speak a maximum of three (3) minutes; however, the President may limit the time, depending on the number of persons requesting to address the Board. B) Due to time constraints, Agenda items may be taken out of order. C) The time schedule is used as a guide. Times are approximate.

AGENDA

6:00      1. Call to Order 2. Pledge of Allegiance

6:01      3. Approval of Agenda

6:02      4. Public Participation 5. Action Items

6:05      a. Possible referendum election November 6, 2018

6:15      b. Potential referendum question(s) 6. Adjourn

Investing in a 20th Century Education Model

by | 1451, 14 Aug 1818 | | 1 Comment

Here’s an interesting bit of data from a report about Open Enrollment that was presented to the West Bend School Board last night. According to that report, 452 kids left the district through open enrollment compared to 193 who entered the district. That’s a net outflow of 259 kids. Of those who left, 19%, or about 85 kids, left to go to a virtual school. And of all of those who left, the top two reasons given for leaving were convenience or they moved. In other words, the physical location of the school buildings didn’t work for the family.

In the 21st century, why does the School Board want to invest tens of millions of dollars in physical buildings instead of investing in modern education delivery models?

UPDATE: I may be reading the colors on their pie chart wrong. It looks like it might actually be 21% left for virtual schools. Hopefully we can see the raw data at some point.

School Board President Advocates Violating District Policy to Conceal Referendum Costs

by | 1042, 14 Aug 1818 | | 0 Comments

During the West Bend School Board meeting last night, the Board President said:

Schmidt also wanted to know if the interest cost would be on the ballot and again voiced his concern about student enrollment projections.

Board President Joel Ongert said, “It will not be on the ballot.”

That would not only be dishonest to the taxpayers by concealing the true cost of the referendum, but it would be a direct violation of the School Board’s own policy 615. That policy states:

It shall be the policy of West Bend Joint School District No. 1 to provide disclosure to District residents and taxpayers regarding the total costs of any proposed referendum, whether it is a facilities referendum, operating referendum, or any other type. The genuine transparency regarding the planned use of public funds provides for a much more fully informed electorate, facilitates better communication with (and within) the community regarding referendum details, and builds trust among all District stakeholders.

Any proposed referendum presented to the District’s Board of Education for approval must disclose the following information and be available for review by the public upon request

1. The total principal dollar amount of the borrowing (typically done through the issuance of long-term bonds (debt)) over its entire term.

2. The total dollar amount of interest expense of the borrowing (i.e., typically a certain annual interest rate is applied to the long-term bonds to calculate the total interest expense over its entire term.

3. The total dollar amount of the referendum, including all principal (see item #1 above), interest (see item #2 above) and any other (e.g., brokerage, bond issuance) costs.

4. All major assumptions and factors used to arrive at item #3 above (i.e., the interest rate used in calculating total interest expense, term of bonds (i.e., time period of the debt), exact nature/type of the bonds, etc.).

If the referendum proposal/resolution is adopted by the Board, any additional communication (e.g., mailed materials to District residents, postings on the District website, communication to media, presentations at Board meetings and other meetings within the community) regarding the referendum must continue to disclose items #1 through #4 above.

I highlighted the relevant part of the policy.

The policy is laudable and has been on the books since 2012. Why is the School Board President seeking to violate their own policy and conceal relevant costs from the taxpayers? Will the other school board members follow his lead?

West Bend School Board Eyes $85 Million Referendum as Enrollment Declines

by | 1033, 14 Aug 1818 | | 1 Comment

Yikes.

WEST BEND — A conservative estimate places interest cost for a $50 million referendum at about $35 million. The referendum funds would build a new Jackson Elementary and renovate parts of the West Bend high schools.

Baird director of public finance, Brian Brewer, estimated the cost using an interest rate of 4.75 percent. Market rates are between 3.5 and 3.75 percent. No action was taken by the board related to referendum information during the Monday meeting.

“I want to go into this conservative,” Brewer said. “I believe rates are poised to be higher than they are.”

That seems like a reasonable estimate. There are some other fascinating comments in the story. Like this one:

The Jackson fund was also discussed by the board and it was recommended by Bray Architects that it be used to pay down debt rather than reduce the referendum amount.

So rather than use the money that the district has been saving for years to pay cash for some of the building, Bray is recommending that we borrow it anyway. This is horrible fiscal management if the board takes their recommendation. It is always better to pay cash, if you have it, than to borrow the money and pay interest on it. Why would Bray recommend that the taxpayers pay interest on money they already have? because then Bray gets control over spending it.

Then there is this:

The amount of taxes paid for school debt will also reduce after debt from previous projects is paid of.

It is not clear if that is the reporter’s comment or if it is a summation of information given at the meeting. Most likely, it is the latter. It’s a nonsensical statement. The West Bend School District currently has about $130 million in outstanding debt. Our taxes are paying off this debt. If the taxpayers approve the referendum, that debt would balloon to about $205 million. That’s roughly $5,125 for every adult in the district.

The suggestion in that statement is that once we pay off some of the old debt, it won’t “cost” any more to pay the new debt. That’s BS. The debt is the debt and it must be paid. The fact that we pay off some old debt does not make the new debt any less. That would be like saying that buying a new car is free because you paid off the old car. That’s how the financially illiterate get themselves into trouble.

West Bend teachers did get raises

by | 0827, 4 Aug 1818 | , | 1 Comment

Former West Bend School Board President, Rick Parks, also took issue with Jason Penterman’s letter to the editor in response to my column.

To the editor: While I do understand that Jason Penterman’s recent letter to the editor on behalf of the West Bend Education Association was provoked by Owen Robinson’s column on upcoming school referendums, that doesn’t relieve Jason of the need to be accurate in what he publishes.

The WBEA has presented the implementation of Act 10 as a pay cut to teachers since it was enacted in 2011. That’s just not true. Act 10 simply required school districts to pass on a percent of the cost for health insurance and retirement plans to employees, just like your employers do where you work. Did that reduce take-home pay? Yes. Does it reduce your takehome pay when your employer passes on your portion of these costs to you? Also yes, but most people would not present this as a pay cut.

Jason also misrepresents the merit pay system that was in place for many years in the West Bend School District. When he says “many veteran employees have received no pay increases for six-plus years” he also distorts reality. At the time I left the school board in April 2017, about 94 percent of the teaching staff received pay increases. The 6 percent that did not were on a performance improvement plan. I can’t say how that played out for veteran versus novice teachers, but knowing the range of experience in the district at that time it’s safe to say that almost all veteran teachers were receiving pay increases.

During my time on the school board I regularly pointed out to my board colleagues that Act 10 did make a real impact on real people’s pocketbook. I never discounted that. But after seven years it’s time to get over it and move on. It’s also time to stop distorting the facts.

Rick Parks

West Bend

West Bend Teacher Rejects Merit Pay

by | 0835, 1 Aug 1818 | | 0 Comments

A couple of weeks ago the Washington County Daily News published my column regarding the upcoming school referendum in West Bend. In that column, I argued that it is not appropriate for the West Bend School Board to ask for more money because (1) fancy buildings don’t lead to better student outcomes, (2) enrollment is declining, and (3) the School Board has failed to be good steward of the money they already have. As examples of poor stewardship, I pointed out that the School Board overpays for insurance and employees pay far below the average for their share of that benefit. I also argued that the School Board has abandoned Merit Pay for their employees. There was a lot in that column…

Anyway, longtime West Bend School District employee and union stalwart, Jason Penterman, took issue with some of the column in a letter to the editor yesterday. Let’s take a look at his feedback. After a preamble, Penterman gets to the meat of his criticism in the last paragraph. Let’s attempt to unpack it:

On July 24, Owen Robinson wrote he’s against any West Bend School District building referendum until the School Board enacts teacher merit pay and makes the employees pay an additional $7,954 for health insurance.

True, kind of. The $7,954 figure is what employees would pay if the district payed the average rate for insurance and asked employees to pay the average percentage for their share. I don’t think that the district necessarily needs to get to that number, but something more than the $49 a month that some employees pay for a family plan would be appropriate.

This would be the second double-digit teacher pay cut in eight years.

To my knowledge, that is not true. As I recall, shortly after Act 10 was passed, the School Board made some changes in the step system to change how fast employees could get raises, but I don’t believe they ever received an actual pay cut. I could be wrong. Even so, there are many people who have received pay cuts in their careers. It happens. It’s never fun, but it happens. And asking teachers to pay a more reasonable share of their generous benefits is not a pay cut.

The current teacher merit pay system originally cost hundreds of thousands of dollars, wasted thousands of school hours on meaningless, multiple choice assessments and turned children into numbers.

That’s the perspective of a teacher who didn’t like merit pay. Generally speaking, when people are held to a higher standard of performance for doing a job, they don’t like it. This is particularly true for people who are not very good at their jobs. Accountability sucks when you are used to having free rein.

The community rejected this.

Really? I don’t recall a community vote on this. A merit pay system was never fully implemented in the district. The previous Superintendent and School Board abandoned the idea with nary a discussion.

Why do that again?

Because holding employees accountable for their performance is how the rest of the world works. The taxpayers of West Bend deserve to know that they are getting good results for their investment. Furthermore, great teachers love merit pay because they can maximize their compensation. An aggressive merit pay system would help attract the best teachers to our district. In the end, would it cost more? Perhaps. If we can get better student outcomes with better employees, I think that’s something taxpayers would be willing to pay for.

With the understanding that unfair pay systems and severe employee pay cuts will damage a company’s ability to attract and retain quality employees and this will damage its product and reputation…

Merit pay does not equal pay cuts. Penterman seems to make that assumption. But the only employees who receive pay cuts under a merit pay system are those who are bad at their jobs. Good employees receive bigger, faster pay raises. In fact, very few merit pay systems actuall cut anyone’s pay. They merely heavily weight pay increases to the better performers.

why would anyone support Robinson’s demand for merit pay and that West Bend School District’s teachers undergo another 10 percent to 15 percent pay cut to get a building referendum passed at the expense of the West Bend, Jackson, Newburg, Polk, Trenton, Barton, and Addison students, parents, taxpayers, businesses and communities?

Where did he pull the 10% to 15% pay cut out of? Who said that? But Penterman seems to be fine with forcing every homeowner to forgo the use of their earned income an pay more taxes for new buildings. For what? Fewer kids in those buildings and the same educational outcomes? The goal of merit pay is to improve the actual education delivered to our children by attracting and rewarding the best educators. I’d rather put more money in the good teachers’ pockets than in the pockets of builders and architects.

 

 

West Bend School Board has not earned the right to ask for more money

by | 0629, 25 Jul 1818 | , | 3 Comments

Here is my full column that ran yesterday in the Washington County Daily News.

After conducting a sham survey that returned the results they paid to get, the West Bend School District’s Board of Education is deciding whether or not to ask the taxpayers for gobs more money via referendum.

Given they have been running the liberal playbook for passing a referendum, the school board is expected to punch it over the goal line and put a massive referendum on the November ballot. The school board should reconsider its reckless course and demonstrate the sensible fiscal management that the citizens deserve.

At issue is the manufactured facilities “crisis” at Jackson Elementary and the West Bend high schools. While the buildings are both perfectly functional and have decades of use left in them if properly maintained, some folks would like to remodel or replace them. Even though buildings have no impact on whether or not kids get a good education compared to what happens inside those buildings, constructing school buildings is easier than doing the hard work necessary to improve educational outcomes.

To that end, the school board created a Citizens Facility Advisory Committee last year that spent months in what proved to be manipulated process designed to tell the school board what it wanted to hear. Then the school board spent thousands of taxpayer dollars to conduct an equally fraudulent community survey that was also designed to tell it what it wanted to hear. On the weight of these two sham activities, the school board is now considering a referendum.

The survey results were presented to the school board last week. Of the approximately 40,000 adults in the district, 2,815 surveys were returned, constituting a 7 percent return rate. Of those 2,815 surveys, 93 percent lived in the district and 17 percent were employees of the school district. Even though the survey was disproportionally weighted with district employees and had a small sample, only 53 percent of respondents supported building a new elementary school in Jackson. The school board is interpreting the survey as telling them that the taxpayers would support a $50 million (not including interest) referendum.

There are many reasons that the taxpayers should not support a referendum in the West Bend School District, but let us highlight perhaps the biggest three.

First, despite the claims of builders and architects who make money from school construction, there is no correlation between fancy school buildings and the quality of education that takes place inside them. Once a minimal standard of safety and function are met, trendy reading nooks and naturally lit atriums do not help one child get a better education. If the school board wants to spend an additional $50 million of the taxpayers’ money, they should at least use the money to provide kids with a better education.

Second, enrollment in the West Bend School District is declining and is projected to continue the slide for the foreseeable future. This has almost nothing to do with the school district itself. It is a reflection of demographic trends and the expansion of alternative educational options. Online learning, School Choice, homeschooling, etc., all erode from an already shrinking student population. Why should the taxpayers invest an additional $50 million to build larger buildings for fewer kids?

Third, the school board has demonstrated poor stewardship of the taxpayers’ resources by failing to fully utilize the power given to it by Act 10 to manage the largest expense in the budget — personnel. Immediately after Act 10, previous school boards began down the path of implementing things like merit pay and benefits reform, but all of that progress stopped a couple of years ago.

Just last week, the Wisconsin Department of Administration released detailed description of the health insurance plans for every school district in Wisconsin. The data shows the least expensive family health insurance plan that the West Bend School District provides costs the taxpayers a whopping $21,864 per year. That compares to an average of $20,062 for all Wisconsin school districts and a national average of $18,764. The other plans offered are even more expensive. The West Bend School District is overpaying for health insurance.

Of that premium, a district employee can pay as little as $588 per year, or 2.7 percent, for their share of the premium if they receive a wellness incentive by passing a wellness screening and not smoking. This compares with an average of 11.7 percent for all Wisconsin school districts, 29 percent for state and local government employees across the nation, and 33 percent for private sector employees across the nation. On top of that, the district provides an onsite clinic for employees at no cost to the employees. Such clinics are supposed to lower the cost of health insurance, but the West Bend School District continues to pay well above the average cost for health insurance and asks employees to pay well below the average for their share.

A little quick math shows that if the West Bend School District simply paid the national average for a family health insurance plan ($18,764) and required employees to pay the national average share of the cost for state and local government employees (29 percent), it would save the taxpayers of the district $7,954 per family plan.

To date, the school board has failed to demonstrate sensible fiscal management on behalf of the citizens of the district.

Before the school board asks the taxpayers to sink tens of millions of more dollars into buildings for a district with declining enrollment, they must at least show that they are willing to use the tools available to them to manage the money they already spend.

West Bend School Board has not earned the right to ask for more money

by | 0719, 24 Jul 1818 | , | 1 Comment

My column for the Washington County Daily News is online today. I think you can guess what the topic is from the headline, but here’s how it starts:

After conducting a sham survey that returned the results they paid to get, the West Bend School District’s Board of Education is deciding whether or not to ask the taxpayers for gobs more money via referendum.

Given they have been running the liberal playbook for passing a referendum, the school board is expected to punch it over the goal line and put a massive referendum on the November ballot. The school board should reconsider its reckless course and demonstrate the sensible fiscal management that the citizens deserve.

Go pick up a paper to read the whole thing. In the same paper, you’ll read a story on the front page about the declining enrollments in the district. We also get a first glimpse of the new Superintendent at work. It appears that he’s already all in for a referendum based on his few weeks living in the community:

During his first board meeting, Superintendent Don Kirkegaard said the Jackson area has three housing developments on the way, one of which will have more than 100 houses.

 

Survey Says!

by | 0707, 18 Jul 1818 | , | 9 Comments

Back in June, I wrote:

The West Bend School District has sent out the survey asking about the appetite for a referendum. As explained when it was announced, this is the survey created by the propaganda group School Perceptions. You can see the whole survey here: school-referendum-survey-2018. As expected, it is more of a propaganda piece than a survey. Given that the survey is designed to elicit a specific, pro-referendum, response and I have almost no faith in the accurate tabulation of the results, I hesitate to even go through it.

As predicted, the survey returned the results that the School Board paid to get.

More than 2,800 community members and staff of the West Bend School District responded to the survey. Non-parent, non-staff community members were least supportive of a referendum, with 22 percent in favor of doing nothing for the aging Jackson Elementary and high schools.

I would note that there are about 40,000 residents of the district, so that’s about a 7% return rate. And the controls on submitting multiple surveys were pretty loose.

Among all taxpayers surveyed, which excludes some staff and parents, 50 percent of taxpayers supported a new elementary or a remodel. The town of Jackson supported a new building at a rate of 62 percent, and the village of Jackson supported a new school at a rate of 67 percent.

[…]

At the high school, the highest support was for increased safety and the lowest support was for a renovation of both the weight room and locker room.

The cost of building a new Jackson Elementary and doing every update for the high schools would be about $80 million. If all projects suggested by the survey were completed at the high school, that alone would cost more than $50 million.

I look forward to seeing the actual results with the detail behind it. All we have right now is a news story, which is just relaying what the district mouthpiece said.

Here comes your referendum, West Bend.

West Bend School District Releases Referendum “Survey”

by | 0941, 1 Jun 1818 | , | 8 Comments

The West Bend School District has sent out the survey asking about the appetite for a referendum. As explained when it was announced, this is the survey created by the propaganda group School Perceptions. You can see the whole survey here: school-referendum-survey-2018. As expected, it is more of a propaganda piece than a survey. Given that the survey is designed to elicit a specific, pro-referendum, response and I have almost no faith in the accurate tabulation of the results, I hesitate to even go through it. Still, as a dutiful citizen, everyone who received one should answer it. Here are a few key facts to consider when responding:

  1. No, there’s no free money. The survey says that “in 2019, the District will pay off a portion of the referendum debt from past building projects, and by 2028 the District will make the final payment on all existing referendum debt.” That’s misleading and is intended to give the impression that there is free money to be had.In truth, the district is already carrying the debt from previous referenda to the tune of over $60 million. As with any debt, the district is slowly whittling down the principal, but the interest if front-loaded in the payment structure. What happens next year is that the payments go down a bit as part of the schedule, but the debt is still being paid off. The Survey positions that as “this drop in loan payments gives the community an opportunity to borrow up to $35 million in facility upgrades with no tax increase over the current level.”Let’s put this in terms of personal finance… this is like when a person has a $10k credit card limit. After paying on it for a while, it frees up $1k of credit limit and the minimum payment has dropped. The person says, “I can borrow another $1,000 and my minimum payment will only increase back to what it already was.” That’s exactly how people run their lives without ever getting out of debt.Essentially, what the District is saying in the Survey is, “we have increased your tax burden through previous referenda and we can borrow and spend another $35 million just by keeping your taxes as high as they are now.” They are assuming that the current baseline tax burden, which is already inflated by previous referenda, is the new normal.It doesn’t have to be. The alternative is to pay off the previous referenda as planned and enjoy a tax DECREASE.
  2. The numbers cited are not the total debt. The West Bend School Board actually did a great thing a couple of years ago. They passed a policy that said that when talking about proposed debt, they needed to be honest about the total amount. The needed to include the project interest that is part of any debt. They ignored that policy in this Survey. Whether talking about $40 million or $80 million, remember that’s borrowed money with interest for years.For example, the $22.8 million referendum that the voters passed back in 2012 was actually a $31.975 million debt paid back over 15 years. We’re still paying on that. So if the voters pass a $80 million referendum, the total payback would likely be between $100 million and $115 million – depending on the interest rate and payback period. At 4% over 15 years, it’s $106.5 million.
  3. The Survey starts with a falsehood. In the introduction, the Survey says, “the Board of Education created a Citizens Facility Advisory Committee (CFAC) last summer. The CFAC, consisting of 28 parents, business leaders, and community members, has studied the educational and facility needs at each location and developed the options explored in the survey.”That’s just not true. Not only was CFAC a sham that was run with a predetermined outcome, but some of the information presented in the Survey was never discussed by CFAC. For example, the Survey discusses the “need” to remodel the cafeteria for $2.2 million. The cafeteria was not covered in the CFAC information packet and I’m told it was not part of any discussion.You will also note that in the CFAC schedule (page 8), the “Committee Presentation of Recommendation to School Board” is scheduled for Late May/ Early June. Well, it’s June 1st and the survey that is supposed to be based on those recommendations is already issued.So what the District is doing is trying to pretend that all of the “needs” cited in the Survey were identified and vetted by a group of concerned community members. It gives the impression that this was a “bottom up” assessment that included community input. Not so. They are using CFAC as cover to give a false impression to the community. It is a dishonest tactic. Frankly, I would be very angry if I had donated my time to CFAC and was used in this way.
  4. Remember that enrollment is declining.  Enrollment has been declining for a few years (see page 83). Specifically in Jackson Elementary, it served a peak of 536 kids in 2009. This year it has 370 kids and is the smallest elementary school in the district by enrollment. Part of the decline was due to a restructuring of the middle schools, but it has declined every year since then too.  The overall district enrollment projections from the February board meeting are below. You will notice that the district is projecting a steady decline in enrollment over the next several years. This has very little to do with the quality of the district. It is a demographic trend of a lower birthrate combined with increasing educational choice. This begs two questions. First, why would we invest in a massive school building expansion for a district that will serve almost 900 fewer kids in 2023 than it did in 2014? Second, as enrollment declines, so does State Aid. That means that more and more of the tax burden will be shifted to local taxpayers unless the district actually reduces spending and taxes to match their enrollment. Why isn’t the district actually reducing spending and taxes if they are serving fewer kids?

wb-enrollment

 

Credit where credit is due… the Survey does provide an option of “I would not support any referendum.” I encourage everyone to check that box.

Former West Bend Superintendent Hired in Ashland

by | 0757, 29 May 1818 | , | 2 Comments

This is good news for Erik Olson and the taxpayers of West Bend. You might remember that Olson was forced out by the West Bend School Board last year for being too conservative (my interpretation – not something the school board will comment on). The School Board gave Olson an incredibly generous separation package for reasons that they never sufficiently explained. It was:

Basically, the agreement pays out Olson for the remainder of his contract. He will receive the amount of his full salary until June 30, 2019 – about $238k. He’ll also get $10k for moving expenses and about $10k for unused vacation time. The school district will also pay for his benefits until June 30, 2019, or until he gets a new job. So the total actual amount is uncertain because of the variability of the cost of benefits, but it’s safe to say that the taxpayers of the West Bend School District are on the hook for something north of $300,000 to buy out Olson’s contract.

The School Board essentially had to buy out his contract because they lacked the sufficient cause to fire him. Thankfully, by getting another job so quickly, Olson has let the taxpayers of West Bend off the hook for tens of thousands of dollars.

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