Four questions / concerns have been raised regarding decisions made by the AASD:

 

 

1. In light of the state budget cut-back (of education), has the district made any attempts to eliminate wasteful spending?

 

Absolutely.  After Wisconsin lawmakers decreased K-12 funding in 2011 by 5.5% per student, having to do more with less was nothing new to the Appleton Area School District.  A culture of identifying and implementing cost saving measures already existed.  Over the past 20 years, the AASD has cut energy costs, reduced employee benefits costs, refinanced debt to reduce interest payments, repurposed unused community facilities to avoid the cost of new buildings, and implemented other cost-savings measures. For details, please visit our Cost Saving Measures page by clicking here.

 

 

2. Why didn't the AASD bid out the District's health insurance plan?

 

Prior to Act 10, the ability to bid out benefits was significantly restricted by existing bargaining rules and regulations.

 

In June of 2011, Act 10 was signed into law. Act 10 dramatically changed the collective bargaining process.  Now, a bidding process, recommended by the AASD’s benefits consultant, has been followed carefully for each of the last two health insurance renewal processes, and has resulted in savings of more than $3 million annually. 

 

 

 

3. Why did the AASD rush through a contract extension before ACT 10 took effect?

 

ACT 10 made significant changes. To comply with the changes, and honor prior commitments to its staff, the AASD extended a contract with educators until ACT 10 took effect. A number of experienced teachers then retired. Because newly hired teachers came in at lower salaries than those of the experienced teachers who had left, the District’s costs were reduced.

 

 

 

4.  The AASD has an unfunded OPEB (retiree healthcare) liability of $130 million. 

 

An unfunded liability is a promised future payment that is not fully funded at the present. OPEB (Other Post-Employment Benefits) is an accounting concept that says you need to account for the cost of future benefits. OPEB does not require that benefits be pre-funded. School districts, including the AASD, typically pay the cost of benefits as they come due.

 

The AASD has reduced the cost of both employee benefits and post-retirement benefits by over $9 million annually since 2011 and has significantly altered the post-retirement benefits to realize additional savings (to be measured through another actuarial study prior to this year’s annual audit). . For details, please visit our Cost Saving Measures page by clicking here.

 

 

In summary, the District has a track record of prudent fiscal management.

 

• It has spent less per student than the state average every year for the last 10 years. In 2013, the spending will be $450 less per student. Even with a successful referendum, the AASD will still spend less per student than the state average.

 

• The District’s prudent fiscal management is confirmed by Moody’s Investors Service. Moody’s, one of the top three credit rating agencies, ranks the creditworthiness of the Appleton School District at AA1. That rating puts the AASD in the top 7% of all districts, state-wide. No district is rated higher.

 

For more information, residents are encouraged to meet with the AASD’s Chief Financial Officer.  Please contact him at hietpasdon@aasd.k12.wi.us.  Or, visit the Appleton Area School District website by clicking here.