As my tenure with HVS winds down, I want to take this opportunity to thank the parents, students, staff and community for the high level of support provided to our District. HVS has been my home for 16 years, so moving on is bittersweet. However, I leave knowing that the District is in good hands.

The L'Anse Creuse Public Schools Board of Education has selected Huron Valley Schools' Superintendent Jackie Johnston as their top choice for superintendent. Johnston has served HVS for 16 years in various positions, most recently for six years as superintendent.

Short Version

Michigan Compiled Law, MCL 388.1618(2), requires school districts and intermediate school districts to post certain budget and financial information on the district's website within 30 days after the board adopts its annual operating budget or any subsequent revisions to that budget. The Budget and Salary / Compensation Transparency Reporting is an opportunity to communicate to our community how we utilize the resources that are provided to us.

• Huron Valley Schools is one of the largest school districts in the state with approximately 10,000 students.
• The District is also the second largest employer in our community with a budget of $84 million, 1600 employees and 18 buildings in operation.
• Approximately 83% of our expenses are personnel related.

The transparency icon on the home page of our website www.huronvalley.k12.mi.us hosts a tremendous amount of information regarding our expenditures. A 99-page budget book for the current school year contains multiple pieces of information, including:

• District's Strategic Plan
• Budget assumptions
• Special education costs
• Summary of the budget reductions made for the 2011-12 school year.

The district is committed to operating under sound financial principles with a consistent strategy toward facilities management. One of the district's primary goals for the 2011-12 school year reads as follows:

Implement strategies that enhance the integrity and efficiency of resources through revenue maximization, cost containment, facilities management and employee relations.

In an effort to meet that goal, the district's leadership is directing multiple activities that include but are not limited to the following:

• Assess vacant buildings to understand current condition, including structural integrity and costs of repurposing for other district programs, as well as programs that are operated by non-profits and institutions of higher education.
• Investigate land sale, redevelopment opportunities by private entities and costs of demolition.

Short Version

• Huron Valley Schools' GRAD 100 program encourages all students to reach higher, challenge themselves and achieve their personal best in order to be successful adults.
• Expanding opportunities for high school students increases achievement.
• HVS offers a variety of specialized programming to help students succeed including:
  -International Academy West
  -MyChinese
  -Advanced Placement courses
  -Dual enrollment
  -School to Work Internships
  -Harbor High School
  -Oakland Opportunity Academy
  -WAY program
  -Oakland Technical Campuses
• Expanded opportunities including technology integration is critical to student success.
• HVS students are achieving at high levels:
  -2011 test results show 74.5% of HVS Advanced Placement students achieved a 3 or higher on the AP tests (required to earn college credit) versus only 65.5% of total Michigan students and only 60.2% of students internationally. The numbers of AP students have grown from 400 in 2007 to over 700 in 2011.
  -HVS students (including IAW students) increased the 2011 ACT average score to 21.6 compared to 20.8 in 2010. The 2011 state average is 20.0.
  -HVS students earned nearly double the credits during the 2011 summer school compared to the 2010 summer school program.
  -95% of IAW students earned their IB diploma (up from 92% last year) and outpaced their global peers of which only 76% earned their IB diploma.
• By continuing to offer a variety of learning opportunities coupled with integrated technology and challenging programs, we will maintain our commitment to GRAD 100 and its overall goal of preparing students to be successful adults in the 21st century global community.

Short Version

• With the start of the 2011-12 school year, HVS implemented the following to enhance our middle school curriculum:
o New 21-6 & 21-7 courses emphasize the skills needed to be successful in this century;
o Revised technology applications course; and
o New Adolescent Accelerated Reader Intervention Program.

• Staffing levels at the middle schools have also been enhanced in the following manner:
o Technology integrator positions have been added to support teachers in getting the most out of the new technology; and
o We are fortunate at this time to be able to implement four-person teams in all but one area. Research shows that four person teams help to build and maintain strong relationships with students and their families while providing experts in the core content areas, which is so critical at the secondary level.

• With the support of the community through passage of the most recent bond, the District has been able to invest in technology, including the following:
o New 21st century classrooms equipped with computers, SMART boards, response systems and flip cameras; and
o 102 new computers for the technology applications course.

• Our students are performing well on assessments:
o Over a three-year average, more than 81 percent of HVS middle school students score at or above grade level on the Gates Reading Test; and
o On the 8th grade EXPLORE Composite, 86 percent of HVS students scored in the 50th percentile or higher, compared to 65 percent for the county.

• Over the past four years, middle schools students have earned more than 2,200 high school credits.

Short Version

• Over 1000 computers were replaced District-wide over the summer to meet the needs of today's students who require a digital learning environment.
• Thanks to voter approved bond funds, federal stimulus monies and career technology dollars, HVS added a myriad of technology throughout the District.
• We added hardware such as digital cameras, camcorders, interactive whiteboards, electronic microscopes, and document cameras that allow teachers to enrich the learning environment to engage students.
• These tools, coupled with multimedia, tap into student's technology skills and creativity to generate higher order thinking.
• At the elementary level, we upgraded computer labs and purchased items such as interactive whiteboards, data projectors, document cameras and digital cameras.
• This summer we also converted six middle school classrooms from life skills to 21st century classrooms and equipped them with digital Flip video cameras, new computers, interactive whiteboards and additional wireless networking.
• A specific focus area at the high school is online learning which includes a virtual Mandarin language course, online courses and the WAY program, an alternative educational program.
• We are developing students with the skills necessary to be successful in the global workplace!

· As required by law, the Huron Valley Schools' Board approved the District's $84 million General Fund budget for 2011-12 at their June 9th meeting.

· A balanced budget was obtained by eliminating a $10.2 million deficit using $7.6 million in cuts and $2.6 million in fund balance.

· The reductions are comprised of:
o Closing a middle school
o Reducing teaching staff due to declining enrollment, closing of a middle school and programming changes at the high school level
o Reducing secretarial support at the high school level due to declining enrollment
o Lowering utility costs through greater energy savings
o Capturing savings through contractual changes and concessions

· In the last eight years, the District has cut over $23 million to balance the budget.

· As a result of shrinking revenues and increasing expenditures, despite our cuts, we will face a structural deficit each year. Therefore, we will continue our efforts in Lansing to push for adequate and equitable funding for our students.

· Despite our challenges, our students are achieving at very high levels:
o MEAP District scores exceed state results on all 18 tests
o MEAP District scores exceed or meet county results in 17 out of 18 tests with fourth grade writing only 4 points below county level
o All middle school scores exceed county and state scores on all 9 tests
o District math scores average a 94% proficiency rate
o District graduation rate increased for the third year in a row with LHS at 93% and MHS at 91%
o Recognized by the College Board as only one of 388 districts nationally who have increased the number of Advanced Placement courses while still enabling more than 70% of students to achieve scores needed to earn college credit

At their June 9th meeting, the Huron Valley Schools Board of Education voted to extend Superintendent Jacqueline Johnston's contract to 2014. Vice President John Knight, presiding at the meeting, also announced Superintendent Johnston voluntarily took a 7% reduction in salary for the 2011-12 school year.

Short Version

• Despite our best grass roots efforts, on May 26th the House and Senate passed the School Aid Budget Bill, HB 4325 which included the largest cut to K-12 public school funding to date. The Governor has not signed the bill yet, but it is expected he will.
  
  
• Key components of the School Aid budget are:
  
  
  • Per student funding cut of $470/pupil. This includes the $170 cut from this year plus an additional cut of $300 for next year.
  • This is a permanent reduction that lowers our foundation allowance to $6,948 per student ($7,418 current year amount - $470 reduction).
  • One-time addition of $100/pupil to partially offset increases in state mandated retirement costs.
  • One-time money for financial "best practices" of $100/pupil if the District meets four out of five criteria which are still being developed.
  • Changing the per student funding formula resulting in a reduction for 2011-12 of approximately $50,000.
  • Eliminating the state's declining enrollment subsidy which is approximately $80,000.
  • Reducing the per pupil funding for half-day kindergarten programs beginning in 2012-13.
• For the HVS budget, the net result is a cut of $370 per student plus an additional loss of $130,000 for the change in the funding formula and declining enrollment subsidy. If we qualify for the "best practices" incentive, the reduction would be $270 per student.
  
  
• The impact of the new School Aid budget on the District is a loss of $3.8 million for the 2011-12 school year.
  
  
• In addition, the state mandated retirement cost for 2011-12 will be $241 per student or $2.4 million in additional expenses.
  
  
• The bottom line impact is a $6.2 million shortfall for next year.
  
  
• These losses of revenue and additional expenses encompass only a portion of the deficit facing Huron Valley Schools next year. The budget, projected deficit and proposed reductions will be presented at the Budget Hearing set for June 9th at 6:30PM at Lakeland High School. The budget is available for review prior to the meeting by contacting the Administrative Services Department at 248-684-8180 and will be posted online after approval by the Board.