Operational Assessment and Identified Efficiency Opportunities Indianapolis Public Schools
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OPERATIONAL ASSESSMENT AND IDENTIFIED EFFICIENCY OPPORTUNITIES INDIANAPOLIS PUBLIC SCHOOLS August 21, 2018 1 US.119433355.01 1 Executive Summary ..................................................................................................................... 4 1.1 Introduction .......................................................................................................................... 4 1.2 Current Financial Status of IPS ........................................................................................... 4 1.3 The Operational Assessment Process ................................................................................. 5 1.4 Key Areas of Focus and Findings ....................................................................................... 6 1.5 Proposed IPS Operational Changes and Projections ......................................................... 8 1.6 Taxpayer Impact................................................................................................................. 13 1.7 Conclusion .......................................................................................................................... 14 2 Assessment Objective and Approach ........................................................................................ 15 2.1 Justification......................................................................................................................... 15 2.2 Intent of the Project ............................................................................................................ 15 2.3 Principles ............................................................................................................................ 15 2.4 Team ................................................................................................................................... 16 2.5 Timeline .............................................................................................................................. 16 2.6 Interviews ........................................................................................................................... 16 2.7 Description of Data Collection and Analysis ................................................................... 17 2.8 Site Tours ............................................................................................................................ 17 2.9 Best Practices and Case Study Research .......................................................................... 17 2.10 Considerations .................................................................................................................... 17 2.11 Limits of the Assessment ................................................................................................... 18 3 Overview of the IPS Tax Base .................................................................................................. 19 3.1 Gross Assessed Value Trends by Property Class ............................................................. 19 3.2 Property Taxes in Indiana .................................................................................................. 19 3.3 Tax Increment Financing Implications ............................................................................. 20 3.4 Homestead Assessed Values ............................................................................................. 21 3.5 Taxpayer Impacts ............................................................................................................... 22 4 Areas of Focus and Efficiency Opportunities........................................................................... 23 4.1 Transportation .................................................................................................................... 23 4.2 Central Office ..................................................................................................................... 28 4.3 Non-Teacher, Non-Certified Administrator School-Based Staffing .............................. 35 4.4 Principals and Other Certified Administrators ................................................................. 37 4.5 Teacher Staffing and Compensation ................................................................................. 40 4.6 Special Programs – SPED and ESL .................................................................................. 44 4.7 School Structure ................................................................................................................. 50 2 US.119433355.01 4.8 Facilities .............................................................................................................................. 51 4.9 Broad Ripple High School................................................................................................. 55 4.10 Innovation Schools ............................................................................................................. 57 4.11 Healthcare Savings ............................................................................................................. 61 4.12 Enterprise Development Director ..................................................................................... 63 4.13 Managed Print Services ..................................................................................................... 64 4.14 Fee-for-Service School Services/Partnerships ................................................................. 67 4.15 Food Service Fund Balance ............................................................................................... 69 5 Selected Efficiency Options – Detailed Model ........................................................................ 72 6 Appendix A – Interviews Conducted ........................................................................................ 74 7 Appendix B – Summary of All Savings Opportunities Identified with Cross Reference to the Selected Efficiency Options Model ............................................................................................. 76 8 Appendix C – Financial Model Option Assumptions .............................................................. 85 8.1 Overview............................................................................................................................. 85 8.2 Revenues ............................................................................................................................. 85 8.3 Expenses ............................................................................................................................. 86 9 End Notes .................................................................................................................................... 87 3 US.119433355.01 1 Executive Summary 1.1 Introduction Beginning in late March 2018, at the request of the Indy Chamber (the “Chamber”), a team comprised of Faegre Baker Daniels Consulting (“FBDC” or “Faegre”) and Policy Analytics, LLC (“PALLC”) consultants (collectively the “Project Team”) worked collaboratively with Indianapolis Public Schools (“IPS” or “the District”) personnel to identify and quantify opportunities for operational efficiencies that would drive more resources to the classroom, significantly increase salaries for teachers and principals, and also protect the interests of taxpayers. Throughout this process, the relationship between the Chamber, the Project Team, and the IPS administration has been professional and productive. In fact, many of the most compelling efficiency options included in the transformation models described herein come from discussions with IPS leaders who recognize the challenges that the District faces and who are thinking creatively about how to address them. 1.2 Current Financial Status of IPS As of 2016-2017, IPS was well-funded on a per pupil basis in comparison to other Central Indiana school districts and other large school districts throughout the State: 1 4 US.119433355.01 An analysis of the broad categories of IPS expenses follows:2 Other 7% School Lunch Classroom/ 5% Education Transportation 47% 10% Capital and Facilities 13% Debt Service 11% Admin/Supt 7% 1.3 The Operational Assessment Process Over the course of this project, the Project Team has: • Conducted interviews with more than 50 IPS senior executives, operational leads, teachers, educational experts, and community stakeholders (see Appendix A); • Requested and reviewed more than 100 documents from IPS; • Toured multiple IPS facilities and spoken with principals and teachers; • Conducted a wide review of best practices research from other urban, choice-rich districts (e.g. Denver, Detroit, New Orleans, and Washington) on issues related to facilities and transportation; • Reviewed previous IPS-commissioned consulting studies on issues such as budgeting and the development of innovation network schools; • Reviewed multiple articles by academics and non-profit educational think tank sources highlighting research and trends related to school operations and outcomes; • Analyzed financial, staffing, and enrollment data – and developed quantitative models to reflect past and future trends; • Reviewed IPS’ proposed list of capital referendum projects; 5 US.119433355.01 • Considered approximately 20 key operational areas in which efficiencies could have the most significant impact for IPS; • Identified more than 50 potential efficiency options for consideration; • Reviewed ideas with IPS staff and Board members and incorporated their