Cutting Fundings Power Point and Solution by: Karl Bludworth Zach Schroeder Divya Warrier Tricia Mackey Shane O’Connor
Problem We are in debt! Solution We will cut funding for employees by cutting their salaries and benefits. We spend 73.5 % of our money on employees.
Assistance • http://www.lakotaonline.com/files/filesystem/2009%20PAFR_uses.pdf • Gives us exact numbers and percentages for what we spend money on • http://www.lbo.state.oh.us/123ga/publications/biennial/ohiofacts/21.cfm • Gives us exact percentages of what most schools spend money on • State • Will aid so that we will get out of debt • Illegal for a public school to be in debt
Resistance • Teachers/Families of teachers • Strike • Quit • Pro-Teacher Organizations
Current Action Plan We will cut approximately 33.33% of the employee benefits. This will save about $9.5 million based on having 1750 employees. This plan will also leave $19 million for employee benefits. This will bring us out of debt for now. This is one of the few possibilities that will affect the teachers only so the students and other staff will not be forced to adapt to the changes. We are estimating that we will be $18.5 million more in debt within the next two years.
Current action plan (cont.) We could also set specific health plans. If we allow teachers that have been working for Lakota for a longer period of time get better health benefits. For the first 5-10 years the employees will have the Basic Health Plan. (Not including if their children have special needs or other disorders. Otherwise, the teachers may get a better health plan earlier.) After the Basic Plan the employees can have the Choice Health Plan for the next 15-25 years. (Once again not including if said employee has children with needs or disorders) After those years said employee can have the Classic Health Plan. This can reduce spending and only have the best health plan for the teachers that will stay for a long time.
Long Term Action Plan To not be in debt we will gradually reduce the employee’s salaries. This will help the teachers adapt to the reduction of their salaries and better plan ahead. We can measure the effectiveness of the plan by noticing how many teachers are quitting as well as how much money we are making.
Cons Pros • We earn the maximum amount of money • We protect the classroom (for the most part) • Encourages employees to stay longer • Less salary for teachers who won’t stay • Employees get less benefits • Employees gain less salaries • May put us back in debt
THANK YOU We appreciate your time and interest!