WCPSS Budget: Finding Savings in Difficult Times

Challenging economic times present school systems with a different set of challenges. The difficulties, however, offer  administrators and school board members alike the opportunity  for real budget reform. In order to address a worsening economic situation, Wake County School officials announced they may have to cut up to $40 million from the proposed 2010-11 budget.  

The administration’s proposed $40 million reduction represents a 3.4 percent decrease in spending of the current $1.2 billion operating budget. Still, there are savings in all budgets, and now is the time for Wake County Public School System to maximize savings.

One area where potential budget savings might accrue is the budget for Membership Dues and Fees (MDF). Dues and fees reflect expenses paid for district-wide memberships or fees and dues derived from membership in a specific organization. While the dues and fees line item is cleaerly not one of the larger budget items, the rapid growth of spending provides a compelling reason for closer review.

According to school system budget documents, the dues and fees budget in fiscal 2000-01 was $77,993. This past year (fiscal 2009-10) the dues and fees budget was $305,954. The current figure actually represents a two percent reduction from the previous year ($312,457).      

Graph 1 charts the year-by-year increase in dues and fee budgets over the past decade.  Since 2000-01, the dues and fees budget has increased 292 percent.

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Membership Dues & Fees: What’s Included?

So what does Wake County Public Schools get for their Membership Dues and Fees spending? Table I lists a breakdown of 2008-09 dues and fees expenditures, the latest year a complete listing of invoices is available. Some interesting observations emerge from the list. 

Table I

WCPSS: Membership Dues and Fees Fiscal 2008-09	Amount
International Baccalaureate	$107,197
NC Dept. of Public Instruction	$33,000
NC School Boards Assn.	$26,415
National School Board Assn.	$14,000
Southern Assn. of Colleges and Schools	$13,125
Educational Research Service	$5,715
Magnet Schools of America	$3,000
Government Finance Officers	$2,395
National School Public Relations Assn.	$2,280
American Assn. of School Administrators	$2,015
Assn. for School Business	$1,970
Assn. for Supervision	$1,695
Department of Homeland Security	$1,320
Construction Management Association for America	$1,200
Consortium for School Networking/COSN	$1,000
Staff Reimbursements for License Renewals	$885
IBSNC	$800
CEFPI	$710
American Institute of Architects	$662
NCSPRA	$600
American School Counselor’s Assn.	$565
Secretary of State of NC	$500
US Green Building Council	$500
Kiwanis Club of Raleigh	$460
National Assn. of Secondary	$452
NC Dept of Health and Human Services	$425
Public School Risk Instiute	$400
National Staff Developmnent	$398
Learning Resources Network	$395
North Carolina Bar Assn.	$350
Recording for the Blind and Dyslexic	$350
National Middle School Assn.	$349
The College Board	$325
NCDA	$320
NCEA	$315
Safety and Health Council of NC	$305
NCASI  Self Insurers	$290
NCMSA	$270
ISSA	$220
American Insitute of CPA’s	$200
Assn. for Local Government Auditors	$200
AAEE	$200
NC Assn. of CPAs	$195
NC Pest  Control Assn.	$175
NCCOSA	$175
CLIA Laboratory Program	$150
National Fire Protection	$150
NC M/WBE Coordinator’s Network	$150
NSDC	$147
Staff Reimbursements for Notary	$140
American Society of Mechanical Engineers	$134
Assn. for Positive Behavior Support	$125
NICET	$125
North Carolina Department of Environment	$125
RCCI	$106
NC department of Environment & Natural Resources	$100
NC Locksmith License	$100
Phi Delta Kappa	$100
Wendell Chamber of Commerce	$100
WPCSOCC	$100
ISTE	$89
Triangle Business Journal	$88
Carolinas Association of Governmental Purchasing	$75
American School Counselor Assn.	$65
Institute of Internal Auditors	$65
NC Water Treatment Facility Operators	$60
international Executive Housekeeper	$50
NC Assn. of Nurserymen	$50
NC Prima	$50
Wal-Mart	$50
Mid-State Safety	$40
NC Department of Agriculture	$30
City of Raleigh	$25
Hoover Press	$20
NC Notary Assn.	$20
Town of Garner	$10
Total	$230,957

The casual observer will immediately notice the size of the first three dues and fees listings. Dues and fees for the International Baccalaureate program, NC Department of Public Instruction and North Carolina School Boards Association account for 72 percent of all spending.   

The $107,197 for the International Baccalaureate  program includes costs for membership dues and testing fees. Currently this program enrolls 8,162 students, or a little over five percent of all students in the school system. The International Baccalaureate program offers a middle and high school program that promotes international understanding and a global perspective. Considering the relatively small number of students and the high costs, the obvious question emerges: Are the high costs of a such a small program justified?

An annual subscription to use the state Department of Public Instruction Human Resource Management System is $33,000. The management system is a web-based system that allows all schools to place employment information on the Internet and integrate application with payroll and benefits systems. Fees for schools are based on size and expected usage. Membership in the National School Boards Association is another significant fee for membership ($26,415). Not all school districts choose to belong to the national association. Do benefits justify the investment? In addition, it should be noted the national association assesses fees based on enrollment, so fees may continue to increase.  

After the top three invoices, the remainder of the list totals about $64,345 in dues and fees invoices from known and not-so-well known organizations. Did you know Wake County Schools subscribes to Education Research Service ($5,715) and International Executive Housekeeper ($50)? While a Google search will provide general information about the organizations and services they provide, does anyone really know if Wake County Schools needs all these memberships? All told, last year’s dues and fees spending came to about $231,000. Again, in 2000-01, total dues and fees was about $78,000.  

2009-2010 Membership Dues and Fees  

Table II lists 2009-2010 dues and fees expenditures to date. Like the previous year, three major entities – The International Baccalaureate program, NC School Boards Association and the National School Boards Association – comprise an exceedingly high percentage of all dues and fees.

Table II

WCPS Membership Dues and Fees, 2009-10 (To Date)	Amount
International Baccalaureate	$176,381
North Carolina School Boards Assn.	$26,415
National School Boards Assn.	$13,250
Magnet Schools of America	$3,000
National Academy Foundation	$2,000
Government Finance Officers	$1,795
Association for Sup. & Curric. Devel.	$1,402
N.C. Dept. of Natural Resources	$1,310
Association of School Business	$1,290
Consortium of School Networking	$1,000
North Carolina High School Athletics Assn.	$1,000
Crisis Prevention Institute, Inc.	$1,000
National School Public	$915
IBSNC	$800
American School Counselor Assoc.	$600
NCSPRA	$600
National Assn. of Secondary	$468
National School Public	$450
American Assoc. of School Administrators	$403
Public School Risk Institute Inc.	$400
National Middle School Association	$349
Kiwanis Club of Raleigh	$345
Carolinas Association of Governmental Purchasing	$325
The College Board	$325
Safety and Health Council of North Carolina	$305
Crisis Prevention Institute, Inc.	$300
Reimbursement to Staff for Notary Fees	$300
ISSA	$220
American Institute of CPAs	$200
Association for Local Government Auditors	$200
Secretary of State of NC	$200
National Staff Development	$199
North Carolina Pest Control Association	$175
Rex Health Care	$160
Society for Human Resource Management	$160
National Fire Prevention	$150
North Carolina M/WBE Coordinator’s Network	$150
National Council of Teachers of Math	$104
WPCSOCC	$100
Zebulon Chamber of Commerce	$100
Phi Delta Kappan	$95
Association for Supervision and Curriculum Dev.	$89
City of Raleigh	$85
Education Week	$80
Institute of Internal Auditors	$75
North Carolina Water Treatment Facility Operators	$60
North Carolina Nursery and Landscape Association	$50
Wendell Chamber of Commerce	$50
Wendell Chamber of Commerce	$50
Wal Mart (Systemwide Sam’s Wholesale Membr.)	$35
NCCOSA	$25
North Carolina Notary Association	$20
Town of Cary	$10
Town of Garner	$10
Totals	$239,580

It should be noted the fees for Human Resource Management System ($33,000) have not yet been filed. Even if Wake County Schools only receives the invoice for the Human Resource Management System, total dues and fees bill would equal $272,580. Curiously, even though the  budgeted amount declined from 2008-09 to 2009-10, total actual expenditures have increased.

While some memberships and fees are justified, several questions emerge from this review: For example:  

• What accounts for a 292 percent increase in dues and fees budget since 2001? Wake County Schools enrollment increased only 44 percent over the same time period.
• Are the high International Baccalaureate costs justified when only five percent of Wake County School students are enrolled in IB?
• Why have costs for the International Baccalaureate program  risen 64 percent in one year?
• Wake County Schools said they do not pay for individual memberships. Then what explains: Reimbursement to staff for Notary Fees – $240 (2009-10) Staff reimbursement for license renewals – $885(2008-09); and Staff Reimbursement for Notary Fees – $140 (2008-09)?  

Wake County Schools faces difficult budget challenges. The administration’s proposal for up to  $40 million in cuts – primarily to the area of Central Services — comprise about 3 percent of the current budget. These actions – though needed —  still fall far short of real budget reform. Our difficult economic times necessitate that all budgets undergo a thorough review. This review shows the need for real budget oversight and how such vigilance can produce significant savings to the district.