Three Tier Bell Schedule
The MISD Board of Trustees met June 22, 2004 and unanimously approved the 2004-05 budget, which includes savings incurred by the implementation of the three-tier bell schedule.

Tuesday night’s meeting opened with a public hearing that included a budget presentation by Steve Fortenberry, chief financial officer for McKinney ISD. The district is currently at the state-mandated $1.50 tax cap on the maintenance and operations portion of the tax rate. Therefore, even though MISD is faced with fast student growth, the district cannot increase the maintenance and operations portion of the tax rate.

Based on revenue projections at the $1.50 cap and a tax base growth of less than 8%, the district faced a $3.4 million shortfall for the upcoming year. In addition, it is likely that the district will face an additional shortfall of $4.4 million for the 2005-06 school year because any potential support from the State of Texas will not impact districts until the 2006-07 school year or beyond.

He said the district must adopt the 2004-05 budget prior to June 30 because the fiscal year for MISD is July 1 - June 30. He added that the budget process began in December, 2003 with the approval of the concept for the Priority One Committee, a group of 56 community members charged with the task of ranking 46 items that would help reduce the projected 2004-05 deficit. (Many of the projected cuts had been identified in the Spring 2003 efficiency and effectiveness audit conducted by WCL enterprises.)

In March, a budget status was provided to the board, and members of the Priority One Committee were appointed. Additionally, in an effort to save money, the board voted to close the ACT Academy, effective for the 2004-05 school year. He also added that, in May, the district received preliminary property values and the Priority One Committee met to rank-order the 46 items.

Fortenberry explained that school district budgets include the general fund and debt service fund. The debt service fund pays for the debt incurred by the building and renovating of buildings. He shared with the audience the trend indicating the decrease in state funding and significant increase in local funding required for the budget. He noted that the percent of the budget allocated to instruction and instructional relations services increased from 62.14 percent in FY04 to 63 percent in FY 05. Furthermore, the percent of the budget allocated to general administration decreased from 3.29 percent in FY04 to 3.22 percent in FY05.

The 2004-05 general fund budget reflects an $8 million increase over the 2003-04 year. The significant cost additions are related to the expected student growth and costs associated with opening two new schools. The additions include 96 new teaching positions, nine additional teacher assistants, increase in electricity rates and pay raises.

The budget also includes the closure of the ACT Academy, as well as the items ranked in the top 14 by the Priority One Committee. The adoption of a FICA alternative plan for substitutes ranked the highest on the list. With the use of a FICA alternative plan, such as an IRS Code Section 457 plan, the district can direct substitutes to contribute their equivalent share of FICA to a tax deferred annuity program in lieu of FICA. The district is not required to match this contribution/salary deferral and can thereby avoid approximately $120,000 of costs.

The second highest priority is to return Club 360 surplus to the general fund. The district currently offers an after-school childcare program called Club 360 at all of the elementary school campuses. The program has generated a surplus of $300,000 through March 2004.

Third on the list is the adoption of FICA Alternative Plan for new hires (90 day). The committee ranked fourth a $5 fee for replacement badges for MISD employees. Next on this list is a recommendation to defer the fleet replacement cycle, followed by a reduction of the number of lawn irrigations from three per week to two per week.

The implementation of a three-tier bell schedule was ranked seventh. The next highest-ranking item requires the reduction of technology professional services costs. Number nine also impacts bus transportation. This item would increase the maximum ride time on a school bus from 45 minutes to 60 minutes. The number 10 item is a freeze on the number of maintenance ground crew employees.

The 2004-05 budget also includes a reduction in the agriculture teacher contract to 192 days; a freeze on central administrative staffing levels (cost avoidance); conversion of the high school library information specialists to paraprofessionals and elimination of the general fund subsidy for high school parking lot attendants. This money would be recovered through an increase in parking fees.

In May, the board approved a recommendation to close the self-insured health plan and join the state insurance plan for MISD employees. The Priority One Committee ranked this item No. 18. The 2004-05 budget will also include items ranking 19-21, which include freezing technology support staff, merging athletics ground crews with maintenance ground crews and reduction of the athletic budget by 10 percent.

The Priority One Committee ranked at No. 22 the reduction of the gifted and talented services to compliance level, which could save the district $765,000.

The district will save $100,000 in this area because two current G/T teaching vacancies will not be filled. The district plans to work this issue out by sharing G/T teaching among campuses with a lower number of G/T students and continuing to offer the same G/T program as the previous year. The remaining $665,000 will be reserved for future discussion.

Other Priority One items NOT included in the 2004-05 budget, but reserved for discussion in the future, include: institution of athletics activity fee (ranked No. 15); reduction of all employee’s contract by one day (16); elimination of Teacher/Employee Recruitment and Retention Program Plan for MISD employees (17); elimination of semi-monthly payroll processing (23); reduction in number of assistant football coaches at high schools by two (25); pairing of elementary library assistants (26); increase in paraprofessional workweek from 36.25 hours to 40 hours (27); elimination of payment of advanced placement exam fees (28); elimination of supplemental funding to McKinney Education Foundation (29); reduction of special education services to compliance level (30); and elimination of night/weekend security drivers (31).

Others considered for future discussion include the elimination of busing for intradistrict games between MHS & MNHS (32); elimination of funding for Communities In Schools program (33); sharing of assistant principals at smaller campuses (34); pairing of nurses at elementary schools and addition of paired nurses aides (35); reduction in the number of assistant principals at high schools (36); pairing of librarians at elementary schools (37); closure of the LINC Center (38); increase in class size ratios in grades 5-12 (38);
pairing of counselors at elementary schools (40); a charge for personal appliance usage for employees with appliances in their offices or classrooms (41); pairing of elementary art teachers (42); pairing of elementary physical education teachers (43); pairing of elementary music teachers (44); and increase in class size on Title 1 campuses (45). Ranked last is the closure of Serenity High School because the school has recently obtained a grant and secured other funding that will operate the school without district funds for the next two years.


The new budget, which is nearly $141 million, will require a tax increase on the debt service rate of 2 cents. The maintenance and operation rate cannot be increased because the district is currently at the state-maximum of $1.50 per $100 valuation. The debt service rate will increase from 48 cents to 50 cents per $100 valuation. The total tax rate needed to fund the budget is $2.00. The tax impact on an average residence, after the homestead exemption, will be approximately $82 per year.

After Fortenberry finished presenting the information on the budget, Deputy Superintendent Ted Moore made a presentation.

“The reason schools exist is to educate kids,” he said. “I want to give you some information that will show you the return on your investment as taxpayers.”

He shared with the audience the fact that, according to a recent article in the Dallas Morning News, McKinney ISD ranked fifth in the Metroplex on the percentage of students earning commended performance on the Texas Assessment of Knowledge and Skills Test. Commended performance is equivalent to making an “A” on the test. “If you look at the districts in the top 4, you will notice that our district looks a little different in terms of student make-up,” he said. “In McKinney, almost one and four kids is considered economically disadvantaged.  What is significant is the fact that the districts listed ahead of us have less than 10 percent economically disadvantaged kids. We are providing a quality education to all students, and we have had this improvement in light of the fast growth.”

He added that the tax roll is heavy on the residential side, with MISD homeowners carrying a heavy burden to fund the education of our children. Also, the state has shifted to the local taxpayer the major responsibility to fund public schools.

“Ten years ago, about 80 percent of our revenue came from the state and 20 percent came from the local taxpayer. That is now reversed,” he said.

He also added that even if the State Legislature finds a solution to provide school districts with relief, the district will probably not experience the relief until 2006, 2007, or beyond.

He went on to share that one of the Priority One items generating a lot of conversation in the community is the three-tier bell schedule.

He said that one year ago an outside auditor recommended that MISD implement a three-tier bell schedule for the 2003-04 school year. At that time, the board directed the administration to study that recommendation for a year.

“The Priority One Committee ranked the three-tier bell schedule as #7, “ he said. “The Priority One pattern ranked direct instructional programs at the bottom of the list to be cut and ranked items of convenience or preference toward the top of the list.”

Moore shared that the recommendation includes the following: elementary school students will attend school from 8:30 a.m. to 3:30 p.m.; middle school students will attend school from 7:45 a.m. to 2:45 p.m.; and high school students will attend school from 9:00 a.m. to 3:30 p.m. Students cannot arrive at school more than 30 minutes before the start time.

A three-tier bell schedule would save MISD a minimum of $340,000 per year because the fleet of busses would be spread across three starting times, causing a smaller number of busses required at any given time.

Moore addressed frequently asked questions regarding the three-tier bell schedule, including the care of elementary students before school.

“MISD currently has an after-school care program called Club 360 at the elementary school level,” he said. “Club 360 will offer before-school care at all elementary schools beginning at 7:00 a.m. MISD is recommending no additional charges for before-school care for the parents of students already attending Club 360 in the afternoon and $10 per week for those students enrolled who need morning care only.”

He also answered the following frequently asked question: “With a 7:45 a.m. start time for middle school students, will there be athletic practice prior to the start of the school day?”

“No,” Moore said. “The middle school athletic coordinators have developed the athletic schedule that has all practices scheduled after school.”

Another question is, “Why is the recommendation for middle school to start first rather than high school?”

“It is our opinion that middle school children in general have less late night activities than high school students and could, therefore, get to bed earlier,” he said. “By high school age, virtually all adolescents are in the developmental stage requiring additional sleep. We could find no evidence that a 45-minute earlier start would negatively impact student achievement at the middle school level.”

The last question he answered is, “Why are you making this recommendation when there is some opposition in the community?”

“There is no easy choice available to meet the financial requirements of the district,” he said. “The board has directed the administration to do everything possible to accommodate our stakeholders in this change. The 45-minute sacrifice in school start times is the equivalent of at least eight teaching positions. We believe this recommendation is in the best interest of the instructional program, aligned to the priorities established by the Priority One Committee, and consistent with budget cuts recommended by the efficiency and effectiveness review (audit).”

During the public hearing, Tony Hardin shared his concerns about the budget, and Lisa Zwillenberg, said she is concerned about some of the working parent’s ability to pay for the before-school care. She also encouraged the board to leave the elementary school start time first.

“We did study whether or not we could place the elementary start time first and incur the savings we need,” Moore said. “If we could have done it that way, we would have. But the savings estimation is only $24,000.”

Prior to the approval of the budget, a few board members made comments about the challenges facing the district.

“We have to balance the budget and make sure we are not cutting the instructional program,” said Michael Puhl, board secretary. “The question is not whether or not you make these changes (three-tier schedule), but when you make them. This is very unpalatable to me, but this decision does not cut the instructional programs.”

“I want to thank the community for their recommendations and ideas, especially on the three-tier schedule,” said Lewis Isaacks, trustee. “We received many ideas and I am happy the community is plugged in. This is a tough budget and there were a number of concerns from the community about the three-tier schedule. One concern involved the impact on the finances of the working parent. The staff has put together a package to address the concerns and I think we have done our best to alleviate the concerns. We also had several concerns about middle school students getting up at the crack of dawn for practice, but it looks like we are going to prevent that. This year was a tough year, but next year will probably be more painful. This is not at the top of my list of things I want to do.”

“As a board member, I want to be able to provide an education that our community expects,” said Board President Geralyn Kever. “Unfortunately, in light of the financial situation, we have to make budget cuts. The Priority One Committee ranking was reassuring to me in that the members had the same ideas as the board in terms of what is important. This year, we are making decisions that impact when the bell rings. Next year, we may have to make decisions impacting what happens after the bell rings. Given the options, I support the budget as recommended.”

The board unanimously approved the 2004-05 budget.

The other action item includes the approval of Pogue Construction as the contractor for the construction of J.B. Wilmeth Elementary School, located off of Stonebridge Drive at the northwest corner of Bristol and Lacima Drive. This school will open in fall of 2005.

The board also approved the consent agenda items, including minutes of previous board meetings, amendments of the authorized representatives for Bank of Texas, N.A., resolution authorizing the establishment of a 457(b) Plan, renewal of participation in Workers’ Compensation Program, various bids and personnel recommendations.