Board Business Meeting Packet December 17, 2012...Dec 17, 2012 · December’17,2012’ ... • assuring the accuracy and completeness of data entered. In addition, each party agrees

Board Business Meeting Packet

December 17, 2012

Action Items

Racine Unified School District Board of Education December 17, 2012

Agenda Item: RUSD Early Learning Program update

Coalition for School Readiness Memorandum of Understanding (MOU) Presenting: Dr. Ann Laing, Superintendent Culleen Witthuhn, Interim Early Childhood Principal

Description: The first part of the presentation will update the board on the RUSD Early

Learning Programs.

The second part of the presentation will consist about information on The School Readiness Coalition. This Coalition began with the Johnson Foundation bringing together key stakeholders in early childhood to begin a dialogue about what is school readiness. Our conversations created a need for common goals, objectives and a common assessment tool. Our intent is to increase student achievement by collaborating with community agencies, empowering families with educational tools, and sharing information between agencies about student developmental needs or concerns. Early and accurate identification of young children who have developmental delays or disorders is key to timely delivery of early intervention services. Our continuing participation is to create a longitudinal system to measure our success and use data to continuously improve our programs. School Readiness Coalition MOU includes: • Test all students using ASQ-‐3 and ASQ:SE screening tool to look for

typical development • Use a data base to look at data to provide feedback to one another’s

organizations to increase student achievement • Improve collaboration by increasing communication within the

community about birth to 6 programs Fiscal Note: Cost of this project is already incurred within our programming. All 4K

students are being given the ASQ as a screener for 4K. The Database that would be used would be RUSD database. Our School Data Team would help with the process for inputting of the data information and create reports so that we may report out to other agencies on the school readiness of students within their programs.

Recommendation: We are requesting that the Board support this Memorandum of

Understanding and the School Readiness Coalition. We are asking that the School Board attend the signing event on January 22nd at 5:30 p.m. We would like the Board President and/or a designee please sign the MOU at the Signing Event.

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School Readiness Coalition of Racine MEMORANDUM OF UNDERSTANDING (MOU)

among

Racine Unified School District (RUSD)

and

Racine Kenosha Community Action Agency (RKCAA) for

Head Start

and

Next Generation Now (NGN)

and

21st Century Preparatory School (21st CPS)

and

United Way of Racine County (UWRC)

and

The Johnson Foundation at Wingspread (TJF)

This is an agreement between the parties listed above hereinafter referred to as “The Coalition”

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I. PURPOSE & SCOPE

The purpose of this MOU is to specify the roles and responsibilities of each party to assess the growth and development of 4-5 year old children and to establish methods and means for monitoring progress as they move through Kindergarten and complete the primary grades. Through the Coalition, the parties will increase collaboration among agencies, use common tools and training for assessment of young children, and share resources in order to reduce costs and avoid unnecessary duplication of services. The ultimate goal of the Coalition is to ensure school readiness and success of young children as they progress along the education continuum. To support this goal, RUSD, Head Start, NGN,21st CPS, and UWRC will engage in strategies to create a longitudinal approach to assessing and teaching young children as they progress from pre-school age into K, 1st, 2nd and 3rd grades. A longitudinal database will be created that will allowdata entry and access to all parties and provide information for continous program improvement.

All will ensure that program activities are carried out in compliance with all applicable Federal laws, rules, and regulations, including Civil Rights and Confidentiality of Student Records.

In particular, this MOU represents the collective commitment to:

• enhance collaboration, • increase student success • reduce unnecessary duplication of services and redundancy, particularly for

parents, and • establish a protocol for future work.

II. BACKGROUND

• RUSD: Racine Unified School District, a public school district serves students from pre-school through high school living in the eastern portion of Racine County. With approximately 21,000 students, we are the fourth largest school district in the state of Wisconsin. The district has 21 elementary schools including three magnet elementary schools, seven middle schools including two magnet middle schools and one charter middle school, and six high schools including one magnet high school, and one charter high school.

Racine Unified features rigorous academics, a success orientation for all students, and strong programming in the fine arts, foreign language, career-to-work, physical education, technology, and other electives. As a district, all eyes are on the North Star. The North Star is a shared vision that clearly identifies the path to successful completion of high school for all RUSD students with an ultimate goal of every graduate being ready for a career and/or college. This goal aligns with the RUSD mission of “Educating Every Student to Succeed.” Our early learning programs include Parent Child Orientated Classrooms, 4K, and Early Childhood opportunities for students with disabilities in our buildings and out

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in the community. We understand that the "North Star Vision" begins with a strong foundation for early learning through parent involvement. Community collaboration along with our early learning opportunities are avenues for us to begin our journey to the North Star.

• RKCAA (Head Start): The Racine Kenosha Community Action Agency, Inc.

(RKCAA) is a non-profit organization whose mission is to provide available local, state, private and federal resources with the goal of enabling low-income individuals of all ages, in rural and urban areas, to attain the skills, knowledge, motivation and opportunities needed for them to become fully self-sufficient. RKCAA administers The Head Start Program in Racine County

The mission of the Head Start Program is to shape and prepare today’s preschool children to succeed in tomorrow’s world. The primary goal for all participating children is that they enter school ready to learn and continue to be successful learners. Head Start is part of a comprehensive system of integrated community services for preschool children in Racine County. Head Start shares, with the families and community, the responsibility for preparing children to meet the challenges of life. This preparation includes understanding the rights of others, appreciating fully the privileges and responsibilities of membership in society, as well as developing wholesome attitudes, multicultural appreciations, academic skills and the social, physical, intellectual and emotional aspects of living.

• NGN: The mission of Next Generation Now (NGN) is to provide resources and family support to prepare children (birth through age 5) for school. Competent, nurturing adults in a safe environment provide care and use a “leading-edge” developmental curriculum that promotes maximum cognitive, emotional, social, and physical development. NGN embraces the children and families in Racine’s central city neighborhoods where more than half of the children live below the federal poverty level. The organization works to create a very positive self-esteem building environment reinforced with proper nutrition, support for families, and opportunities for parents focused on strengthening families. 21st Century Preparatory School: In the fall of 2002, Racine families had a new choice in education. Established under a charter from the University of Wisconsin-Parkside, the Preparatory School is an independent public school of choice for Racine’s diverse student population. Its purpose is to help students thrive academically, personally and socially to prepare them to succeed as adults in 21st century American society. The Preparatory School provides students an alternative for access to academic excellence, and success in a wide range of life choices. Our unique learning community prepares children of all backgrounds and learning styles for future achievement, opening the door for college and careers. Our student body reflects the community as a whole — culturally and economically diverse, and inclusive of children at risk of failure. The Preparatory School promotes student success through smaller class sizes, a focus on the learning needs of each student enrolled, and a strong culture that sets high expectations for everyone involved.

• United Way (Advancing Family Assets Initiative): Advancing Family Assets

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is a community impact initiative of the United Way of Racine County that provides low-wage working families with support services to help them lead a better life: a quality education that leads to a stable job; enough income to support the family through retirement; and good health for all members of the family. Eligible families are those who are Racine residents, live at or below 200% of the Federal Poverty Level, have dependent children, are employed or have been employed during the past 12 months, and are motivated. AFA serves all members of the family, adults and children, and focuses intensively on making sure children are on track for healthy development and ultimately graduation from high school. Since its inception, AFA has utilized the Ages and Stages Questionnaires to assess the healthy development of young children.

• The Johnson Foundation: The Johnson Foundation at Wingspread is dedicated

to serving as a catalyst for innovative public and private solutions in two spheres – one global and one regional – that reflect the Johnson Family’s longstanding passions: healthy environments and healthy local communities. The Foundation serves as the convener and facilitator for the Coalition.

III. JOINT RESPONSIBILITIES UNDER THIS MOU

All parties are responsible for: • promoting involvement in the Coalition by delivering consistent messages; • training their respective staff/teams on the proper use of the ASQ-3 and

ASQ:SE assessments and the procedures for managing and sharing data; • executing the necessary forms and releases in order to facilitate the exchange

of information between agencies; • responding expeditiously to requests from partner agencies and the Coalition • maintaining the highest level of confidentiality and respect for the sensitivity

of the data collected, reviewed and shared; • using the agreed upon parent release forms for purposes of data sharing among

the parties over multiple years; • using reports retrieved for purposes of program improvement, sharing

information with receiving teachers and assessing student success longitudinally; and

• assuring the accuracy and completeness of data entered. In addition, each party agrees to follow the attached protocols listed below:

• data entry and retrieval (including unduplicated multiple providers) (attachment 1);

• method for conducting assessments including ages for screening—48-60 months (attachment 2);

• completing transition information (attachment 3); • levels of confidentiality (multiple person access) with Human Subjects

certification for Administrators (attachment 4); and • creating, retrieving and disseminating reports (attachment 5).

Finally, each party agrees to:

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• jointly explore/implement additional PK/K assessments (e.g. PALS) as appropriate;

• Conduct ongoing training for staff including joint training when appropriate; • identify a site administrator for purposes of data management and

coordination; and • submit accurate information for inclusion in the SchoolNet database.

IV. AGENCY RESPONSIBILITIES UNDER THIS MOU

The RUSD agrees to continue to enter Coalition data in SchoolNet and to extract the agreed upon reports for the Coalition. The Johnson Foundation agrees to continue to convene and facilitate regular meetings of the Coalition for the life of the pilot project.

V. SHARED EXPENSES

Each party will assume the costs of administering the ASQ-3 and ASQ:SE and any additional agreed upon assessments to children enrolled in the respective programs.

VI. IT IS MUTUALLY UNDERSTOOD AND AGREED BY AND BETWEEN THE PARTIES THAT:

this MOU is at will and may be modified or terminated with the mutual consent of the authorized officials of the respective parties. This MOU will remain in effect through the 2012-2014 academic years.

VII. RECORD RETENTION

RUSD will maintain records of transactions related to all student records entered in SchoolNet.

VIII. EFFECTIVE DATE AND SIGNATURE

This MOU shall be effective upon the signature of all authorized officials for each Coalition member organization. It shall be in force from July 1, 2012 to June 30, 2014.

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The Parties indicate agreement with this MOU by their signatures: Racine Unified School District (RUSD) ________________________ _________________________ ________ Signature Title Date

Racine Kenosha Community Action Agency (RKCAA) for Head Start ________________________ _________________________ ________ Signature Title Date

Next Generation Now (NGN) ________________________ _________________________ ________ Signature Title Date

21st Century Preparatory School (21st CPS) ________________________ _________________________ ________ Signature Title Date

United Way of Racine County (UWRC) ________________________ _________________________ ________ Signature Title Date

The Johnson Foundation at Wingspread (TJF) ________________________ _________________________ ________ Signature Title Date

BOARD OF EDUCATION December 17, 2012

BUDGET and FINANCE AGENDA ITEM: RESOLUTION AUTHORIZINGTHE ISSUANCE AND SALE OF $10,000,000

GENERAL OBLIGATION REFUNDING BONDS PRESENTING: David Hazen, CFO DESCRIPTION: The Board of Education approved borrowing for making improvements and major

maintenance repairs to District schools. The District has entered into two performance contracts as a means to complete this work. This borrowing is the second step of the first of a series of borrowings that will pay for the work done over the next 18 months. This first step approved in October was for $10,000,000 and was short term. This is the long term bond repaying and replacing the short term note.

FISCAL NOTE: The interest rate is -------% and the purchaser of the note is -----------------.

Payments will be made from the anticipated savings from energy and operating efficiencies as well as capital cost avoidance. The Board can levy to help pay the required debt service. The plan is for the required levy to replace the referendum levy that will end this fiscal year and will not increase taxes.

RECOMMENDATION: Approve the resolution allowing the issuance of the bonds.

QB\18880817.1

RESOLUTION NO. ______

RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $10,000,000 GENERAL OBLIGATION REFUNDING BONDS

WHEREAS, the School Board of the Racine Unified School District, Racine County, Wisconsin (the "District") hereby finds and determines that it is necessary, desirable and in the best interest of the District to raise funds for the purpose of paying the cost of refinancing certain outstanding obligations of the District, to wit: Note Anticipation Notes, dated November 1, 2012 (the "Refunded Obligations") (hereinafter the refinancing of the Refunded Obligations shall be referred to as the "Refunding"), and there are insufficient funds on hand to pay said cost;

WHEREAS, the School Board deems it to be necessary, desirable and in the best interest of the District to refund the Refunded Obligations for the purpose of providing permanent financing for the projects financed by the Refunded Obligations;

WHEREAS, school districts, are authorized by the provisions of Section 67.04, Wisconsin Statutes, to borrow money and issue general obligation refunding bonds to refinance their outstanding obligations;

WHEREAS, the District has directed Robert W. Baird & Co. Incorporated ("Baird") to take the steps necessary to sell general obligation refunding bonds (the "Bonds");

WHEREAS, Baird, in consultation with the officials of the District, prepared an Official Notice of Sale (a copy of which is attached hereto as Exhibit A

WHEREAS, the District Clerk (in consultation with Baird) caused a form of notice of the sale to be published and/or announced and caused the Official Notice of Sale to be distributed to potential bidders offering the Bonds for public sale on December 17, 2012;

and incorporated herein by this reference) setting forth the details of and the bid requirements for the Bonds and indicating that the Bonds would be offered for public sale on December 17, 2012;

WHEREAS, the District has duly received bids for the Bonds as described on the Bid Tabulation attached hereto as Exhibit B and incorporated herein by this reference (the "Bid Tabulation"); and

WHEREAS, it has been determined that the bid proposal (the "Proposal") submitted by the financial institution listed first on the Bid Tabulation fully complies with the bid requirements set forth in the Official Notice of Sale and is deemed to be the most advantageous to the District. Baird has recommended that the District accept the Proposal. A copy of said Proposal submitted by such institution (the "Purchaser") is attached hereto as Exhibit C and incorporated herein by this reference.

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NOW, THEREFORE, BE IT RESOLVED by the School Board of the District that:

Section 1A. Ratification of the Official Notice of Sale and Offering Materials. The School Board of the District hereby ratifies and approves the details of the Bonds set forth in Exhibit A attached hereto as and for the details of the Bonds. The Official Notice of Sale and any other offering materials prepared and circulated by Baird are hereby ratified and approved in all respects. All actions taken by officers of the District and Baird in connection with the preparation and distribution of the Official Notice of Sale, and any other offering materials are hereby ratified and approved in all respects.

Section 1B. Authorization of the Bonds. For the purpose of paying the cost of the Refunding, there shall be borrowed, pursuant to Section 67.04, Wisconsin Statutes, through the issuance of the Bonds, the sum of TEN MILLON DOLLARS ($10,000,000).

Section 1C. Award of the Bonds. The Proposal of the Purchaser offering to purchase the Bonds for the sum set forth on the Proposal [(as modified on the Bid Tabulation and reflected in

the Pricing Summary referenced below and incorporated herein)], plus accrued interest to the

date of delivery, resulting in a net interest cost as set forth on the Proposal [(as modified on the

Bid Tabulation)] is hereby accepted. The District President and District Clerk or other appropriate officers of the District are authorized and directed to execute an acceptance of the Proposal on behalf of the District. The good faith deposit of the Purchaser shall be retained by the District Treasurer until the closing of the bond issue, and any good faith deposits submitted by unsuccessful bidders shall be promptly returned. The Bonds bear interest at the rates set forth on the Proposal.

Section 2. Terms of the Bonds. The Bonds shall be designated "General Obligation Refunding Bonds"; shall be issued in the aggregate principal amount of $10,000,000; shall be dated January 3, 2013; shall be in the denomination of $5,000 or any integral multiple thereof; shall be numbered R-1 and upward; and shall bear interest at the rates per annum; and mature on April 1 of each year, in the years and principal amounts as set forth on the Pricing Summary attached hereto as Exhibit D-1 and incorporated herein by this reference. Interest is payable semi-annually on April 1 and October 1 of each year commencing on April 1, 2013. Interest shall be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to the rules of the Municipal Securities Rulemaking Board. The schedule of principal and interest payments due on the Bonds is set forth on the Debt Service Schedule attached hereto as Exhibit D-2 and incorporated herein by this reference (the "Schedule").

Section 3. Redemption Provisions. The Bonds shall be subject to redemption prior to maturity, at the option of the District, on April 1, 2021 or on any date thereafter. Said Bonds shall be redeemable as a whole or in part, and if in part, from maturities selected by the District and within each maturity, by lot, at the principal amount thereof, plus accrued interest to the date of redemption.

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Section 4. Form of the Bonds. The Bonds shall be issued in registered form and shall be executed and delivered in substantially the form attached hereto as Exhibit E and incorporated herein by this reference.

Section 5. Tax Provisions.

(A) Direct Annual Irrepealable Tax Levy. For the purpose of paying the principal of and interest on the Bonds as the same becomes due, the full faith, credit and resources of the District are hereby irrevocably pledged, and there is hereby levied upon all of the taxable property of the District a direct annual irrepealable tax in the years 2013 through 2027 for the payments due in the years 2013 through 2028 in the amounts set forth on the Schedule. The amount of tax levied in the year 2013 shall be the total amount of debt service due on the Bonds in the years 2013 and 2014; provided that the amount of such tax carried onto the tax rolls shall be abated by any amounts appropriated pursuant to subsection (D) below which are applied to payment of principal of or interest on the Bonds in the year 2013.

(B) Tax Collection

(C) Additional Funds. If at any time there shall be on hand insufficient funds from the aforesaid tax levy to meet principal and/or interest payments on said Bonds when due, the requisite amounts shall be paid from other funds of the District then available, which sums shall be replaced upon the collection of the taxes herein levied.

. So long as any part of the principal of or interest on the Bonds remains unpaid, the District shall be and continue without power to repeal such levy or obstruct the collection of said tax until all such payments have been made or provided for. After the issuance of the Bonds, said tax shall be, from year to year, carried onto the tax roll of the District and collected in addition to all other taxes and in the same manner and at the same time as other taxes of the District for said years are collected, except that the amount of tax carried onto the tax roll may be reduced in any year by the amount of any surplus money in the Debt Service Fund Account created below.

(D) Appropriation. The District hereby appropriates from taxes levied in anticipation of the issuance of the Bonds, or other funds of the District on hand a sum sufficient to be irrevocably deposited in the segregated Debt Service Fund Account created below and used to pay the interest on the Bonds coming due on April 1, 2013 and October 1, 2013 as set forth on the Schedule.

Section 6. Segregated Debt Service Fund Account.

(A) Creation and Deposits. There be and there hereby is established in the treasury of the District, if one has not already been created, a debt service fund, separate and distinct from every other fund, which shall be maintained in accordance with generally accepted accounting principles. Debt service or sinking funds established for obligations previously issued by the District may be considered as separate and distinct accounts within the debt service fund.

Within the debt service fund, there hereby is established a separate and distinct account designated as the "Debt Service Fund Account for $10,000,000 General Obligation Refunding Bonds, dated January 3, 2013" (the "Debt Service Fund Account") and such account shall be

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maintained until the indebtedness evidenced by the Bonds is fully paid or otherwise extinguished. The District Treasurer shall deposit in the Debt Service Fund Account (i) all accrued interest received by the District at the time of delivery of and payment for the Bonds; (ii) any premium not used for the Refunding which may be received by the District above the par value of the Bonds and accrued interest thereon; (iii) all money raised by the taxes herein levied and any amounts appropriated for the specific purpose of meeting principal of and interest on the Bonds when due; (iv) such other sums as may be necessary at any time to pay principal of and interest on the Bonds when due; (v) surplus monies in the Borrowed Money Fund as specified below; and (vi) such further deposits as may be required by Section 67.11, Wisconsin Statutes.

(B) Use and Investment. No money shall be withdrawn from the Debt Service Fund Account and appropriated for any purpose other than the payment of principal of and interest on the Bonds until all such principal and interest has been paid in full and the Bonds canceled; provided (i) the funds to provide for each payment of principal of and interest on the Bonds prior to the scheduled receipt of taxes from the next succeeding tax collection may be invested in direct obligations of the United States of America maturing in time to make such payments when they are due or in other investments permitted by law; and (ii) any funds over and above the amount of such principal and interest payments on the Bonds may be used to reduce the next succeeding tax levy, or may, at the option of the District, be invested by purchasing the Bonds as permitted by and subject to Section 67.11(2)(a), Wisconsin Statutes, or in permitted municipal investments under the pertinent provisions of the Wisconsin Statutes ("Permitted Investments"), which investments shall continue to be a part of the Debt Service Fund Account. Any investment of the Debt Service Fund Account shall at all times conform with the provisions of the Internal Revenue Code of 1986, as amended (the "Code") and any applicable Treasury Regulations (the "Regulations").

(C) Remaining Monies. When all of the Bonds have been paid in full and canceled, and all Permitted Investments disposed of, any money remaining in the Debt Service Fund Account shall be transferred and deposited in the general fund of the District, unless the School Board directs otherwise.

Section 7. Proceeds of the Bonds; Segregated Borrowed Money Fund

Section 8. No Arbitrage. All investments made pursuant to this Resolution shall be Permitted Investments, but no such investment shall be made in such a manner as would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code or the Regulations and an officer of the District, charged with the responsibility for issuing the Bonds,

. The proceeds of the Bonds (the "Bond Proceeds") (other than any premium not used for the Refunding and accrued interest which must be paid at the time of the delivery of the Bonds into the Debt Service Fund Account created above) shall be deposited into a special fund separate and distinct from all other funds of the District and disbursed solely for the purpose for which borrowed or for the payment of the principal of and the interest on the Bonds. Monies in the Borrowed Money Fund may be temporarily invested in Permitted Investments. Any monies, including any income from Permitted Investments, remaining in the Borrowed Money Fund after the purpose for which the Bonds have been issued has been accomplished, and, at any time, any monies as are not needed and which obviously thereafter cannot be needed for such purpose shall be deposited in the Debt Service Fund Account.

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shall certify as to facts, estimates, circumstances and reasonable expectations in existence on the date of delivery of the Bonds to the Purchaser which will permit the conclusion that the Bonds are not "arbitrage bonds," within the meaning of the Code or Regulations.

Section 9. Compliance with Federal Tax Laws. (a) The District represents and covenants that the projects financed by the Bonds and by the Refunded Obligations and the ownership, management and use of the projects will not cause the Bonds or the Refunded Obligations to be "private activity bonds" within the meaning of Section 141 of the Code. The District further covenants that it shall comply with the provisions of the Code to the extent necessary to maintain the tax-exempt status of the interest on the Bonds including, if applicable, the rebate requirements of Section 148(f) of the Code. The District further covenants that it will not take any action, omit to take any action or permit the taking or omission of any action within its control (including, without limitation, making or permitting any use of the proceeds of the Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be an arbitrage bond or a private activity bond within the meaning of the Code or would otherwise cause interest on the Bonds to be included in the gross income of the recipients thereof for federal income tax purposes. The District Clerk or other officer of the District charged with the responsibility of issuing the Bonds shall provide an appropriate certificate of the District certifying that the District can and covenanting that it will comply with the provisions of the Code and Regulations.

(b) The District also covenants to use its best efforts to meet the requirements and restrictions of any different or additional federal legislation which may be made applicable to the Bonds provided that in meeting such requirements the District will do so only to the extent consistent with the proceedings authorizing the Bonds and the laws of the State of Wisconsin and to the extent that there is a reasonable period of time in which to comply.

Section 10. Qualified Tax-Exempt Obligations. The Bonds are deemed designated as "qualified tax-exempt obligations" pursuant to the provisions of Section 265(b)(3)(D)(ii) of the Code and in support of such designation, the District Clerk or other officer of the District charged with the responsibility for issuing the Bonds, shall provide an appropriate certificate of the District, all as of the Closing.

Section 11. Execution of the Bonds; Closing; Professional Services. The Bonds shall be issued in printed form, executed on behalf of the District by the manual or facsimile signatures of the District President and District Clerk, authenticated, if required, by the Fiscal Agent (defined below), sealed with its official or corporate seal, if any, or a facsimile thereof, and delivered to the Purchaser upon payment to the District of the purchase price thereof, plus accrued interest to the date of delivery (the "Closing"). The facsimile signature of either of the officers executing the Bonds may be imprinted on the Bonds in lieu of the manual signature of the officer but, unless the District has contracted with a fiscal agent to authenticate the Bonds, at least one of the signatures appearing on each Bond shall be a manual signature. In the event that either of the officers whose signatures appear on the Bonds shall cease to be such officers before the Closing, such signatures shall, nevertheless, be valid and sufficient for all purposes to the same extent as if they had remained in office until the Closing. The aforesaid officers are hereby authorized and directed to do all acts and execute and deliver the Bonds and all such documents, certificates and acknowledgements as may be necessary and convenient to effectuate the Closing. The District

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hereby authorizes the officers and agents of the District to enter into, on its behalf, agreements and contracts in conjunction with the Bonds, including but not limited to agreements and contracts for legal, trust, fiscal agency, disclosure and continuing disclosure, and rebate calculation services. Any such contract heretofore entered into in conjunction with the issuance of the Bonds is hereby ratified and approved in all respects.

Section 12. Payment of the Bonds; Fiscal Agent. The principal of and interest on the Bonds shall be paid by the District Clerk or District Treasurer (the "Fiscal Agent").

Section 13. Persons Treated as Owners; Transfer of Bonds

Any Bond may be transferred by the registered owner thereof by surrender of the Bond at the office of the Fiscal Agent, duly endorsed for the transfer or accompanied by an assignment duly executed by the registered owner or his attorney duly authorized in writing. Upon such transfer, the District President and District Clerk shall execute and deliver in the name of the transferee or transferees a new Bond or Bonds of a like aggregate principal amount, series and maturity and the Fiscal Agent shall record the name of each transferee in the registration book. No registration shall be made to bearer. The Fiscal Agent shall cancel any Bond surrendered for transfer.

. The District shall cause books for the registration and for the transfer of the Bonds to be kept by the Fiscal Agent. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and payment of either principal or interest on any Bond shall be made only to the registered owner thereof. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.

The District shall cooperate in any such transfer, and the District President and District Clerk are authorized to execute any new Bond or Bonds necessary to effect any such transfer.

Section 14. Record Date. The fifteenth day of each calendar month next preceding each interest payment date shall be the record date for the Bonds (the "Record Date"). Payment of interest on the Bonds on any interest payment date shall be made to the registered owners of the Bonds as they appear on the registration book of the District at the close of business on the Record Date.

Section 15. Utilization of The Depository Trust Company Book-Entry-Only System

Section 16. Official Statement. The School Board hereby approves the Preliminary Official Statement with respect to the Bonds and deems the Preliminary Official Statement as "final" as of its date for purposes of SEC Rule 15c2-12 promulgated by the Securities and Exchange Commission pursuant to the Securities and Exchange Act of 1934 (the "Rule"). All actions taken by officers of the District in connection with the preparation of such Preliminary Official Statement and any addenda to it or Final Official Statement are hereby ratified and approved. In connection with the Closing, the appropriate District official shall certify the

. In order to make the Bonds eligible for the services provided by The Depository Trust Company, New York, New York ("DTC"), the District agrees to the applicable provisions set forth in the Blanket Issuer Letter of Representations previously executed on behalf of the District and on file in the District Clerk's office.

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Preliminary Official Statement and any addenda or Final Official Statement. The District Clerk shall cause copies of the Preliminary Official Statement and any addenda or Final Official Statement to be distributed to the Purchaser.

Section 17. Undertaking to Provide Continuing Disclosure. The District hereby covenants and agrees, for the benefit of the owners of the Bonds, to enter into a written undertaking (the "Undertaking") if required by the Rule to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events in accordance with the Rule. The Undertaking shall be enforceable by the owners of the Bonds or by the Purchaser on behalf of such owners (provided that the rights of the owners and the Purchaser to enforce the Undertaking shall be limited to a right to obtain specific performance of the obligations thereunder and any failure by the District to comply with the provisions of the Undertaking shall not be an event of default with respect to the Bonds).

To the extent required under the Rule, the District Clerk, or other officer of the District charged with the responsibility for issuing the Bonds, shall provide a Continuing Disclosure Certificate for inclusion in the transcript of proceedings, setting forth the details and terms of the District's Undertaking.

Section 18. Redemption of the Refunded Obligations

The District hereby directs the District Clerk to work with Baird to cause timely notice of redemption, in substantially the form attached hereto as

. The Refunded Obligations are hereby called for prior payment and redemption on February 1, 2013 at a price of par plus accrued interest to the date of redemption.

Exhibit F

Section 19. Record Book. The District Clerk shall provide and keep the transcript of proceedings as a separate record book (the "Record Book") and shall record a full and correct statement of every step or proceeding had or taken in the course of authorizing and issuing the Bonds in the Record Book.

and incorporated herein by this reference (the "Notice"), to be provided at the times, to the parties and in the manner set forth on the Notice. All actions heretofore taken by the officers and agents of the District to effectuate the redemption of the Refunded Obligations are hereby ratified and approved.

Section 20. Bond Insurance. If the Purchaser determines to obtain municipal bond insurance with respect to the Bonds, the officers of the District are authorized to take all actions necessary to obtain such municipal bond insurance. The District President and District Clerk are authorized to agree to such additional provisions as the bond insurer may reasonably request and which are acceptable to the District President and District Clerk including provisions regarding restrictions on investment of Bond proceeds, the payment procedure under the municipal bond insurance policy, the rights of the bond insurer in the event of default and payment of the Bonds by the bond insurer and notices to be given to the bond insurer. In addition, any reference required by the bond insurer to the municipal bond insurance policy shall be made in the form of Bond provided herein.

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Section 21. Conflicting Resolutions; Severability; Effective Date

Adopted, approved and recorded December 17, 2012.

. All prior resolutions, rules or other actions of the School Board or any parts thereof in conflict with the provisions hereof shall be, and the same are, hereby rescinded insofar as the same may so conflict. In the event that any one or more provisions hereof shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provisions hereof. The foregoing shall take effect immediately upon adoption and approval in the manner provided by law.

_____________________________ Dennis Wiser District President

ATTEST:

____________________________ Gretchen L. Warner District Clerk

QB\18880817.1

EXHIBIT A

To be provided by Robert W. Baird & Co. Incorporated and incorporated into the Resolution.

Official Notice of Sale

(See Attached)

QB\18880817.1

EXHIBIT B

Bid Tabulation


(See Attached)

QB\18880817.1

EXHIBIT C

Winning Bid


(See Attached)

QB\18880817.1

EXHIBIT D-1


Pricing Summary

(See Attached)

QB\18880817.1

EXHIBIT D-2


Debt Service Schedule and Irrepealable Tax Levies

(See Attached)

QB\18880817.1

EXHIBIT E

(Form of Bond)

UNITED STATES OF AMERICA REGISTERED STATE OF WISCONSIN DOLLARS

RACINE COUNTY NO. R-___ RACINE UNIFIED SCHOOL DISTRICT $_______

GENERAL OBLIGATION REFUNDING BOND

MATURITY DATE: ORIGINAL DATE OF ISSUE: INTEREST RATE: CUSIP:

April 1, _____ January 3, 2013 ____% ______

DEPOSITORY OR ITS NOMINEE NAME: CEDE & CO.

PRINCIPAL AMOUNT: _______________________ THOUSAND DOLLARS ($__________)

FOR VALUE RECEIVED, the Racine Unified School District, Racine County, Wisconsin (the "District"), hereby acknowledges itself to owe and promises to pay to the Depository or its Nominee Name (the "Depository") identified above (or to registered assigns), on the maturity date identified above, the principal amount identified above, and to pay interest thereon at the rate of interest per annum identified above, all subject to the provisions set forth herein regarding redemption prior to maturity. Interest is payable semi-annually on April 1 and October 1 of each year commencing on April 1, 2013 until the aforesaid principal amount is paid in full. Both the principal of and interest on this Bond are payable to the registered owner in lawful money of the United States. Interest payable on any interest payment date shall be paid by wire transfer to the Depository in whose name this Bond is registered on the Bond Register maintained by the District Clerk or District Treasurer (the "Fiscal Agent") or any successor thereto at the close of business on the 15th day of the calendar month next preceding the semi-annual interest payment date (the "Record Date"). This Bond is payable as to principal upon presentation and surrender hereof at the office of the Fiscal Agent.

For the prompt payment of this Bond together with interest hereon as aforesaid and for the levy of taxes sufficient for that purpose, the full faith, credit and resources of the District are hereby irrevocably pledged.

This Bond is one of an issue of Bonds aggregating the principal amount of $10,000,000, all of which are of like tenor, except as to denomination, interest rate and maturity date, issued by the District pursuant to the provisions of Section 67.04, Wisconsin Statutes, for the purpose of paying the cost of refunding certain outstanding obligations of the District, all as authorized by a resolution of the School Board duly adopted by said governing body at a meeting held on December 17, 2012. Said resolution is recorded in the official minutes of the School Board for said date.

-2- QB\18880817.1

The Bonds are subject to redemption prior to maturity, at the option of the District, on April 1, 2021 or on any date thereafter. Said Bonds are redeemable as a whole or in part, and if in part, from maturities selected by the District and within each maturity, by lot (as selected by the Depository), at the principal amount thereof, plus accrued interest to the date of redemption.

In the event the Bonds are redeemed prior to maturity, as long as the Bonds are in book-entry-only form, official notice of the redemption will be given by mailing a notice by registered or certified mail, overnight express delivery, facsimile transmission, electronic transmission or in any other manner required by the Depository, to the Depository not less than thirty (30) days nor more than sixty (60) days prior to the redemption date. If less than all of the Bonds of a maturity are to be called for redemption, the Bonds of such maturity to be redeemed will be selected by lot. Such notice will include but not be limited to the following: the designation, date and maturities of the Bonds called for redemption, CUSIP numbers, and the date of redemption. Any notice provided as described herein shall be conclusively presumed to have been duly given, whether or not the registered owner receives the notice. The Bonds shall cease to bear interest on the specified redemption date provided that federal or other immediately available funds sufficient for such redemption are on deposit at the office of the Depository at that time. Upon such deposit of funds for redemption the Bonds shall no longer be deemed to be outstanding.

It is hereby certified and recited that all conditions, things and acts required by law to exist or to be done prior to and in connection with the issuance of this Bond have been done, have existed and have been performed in due form and time; that the aggregate indebtedness of the District, including this Bond and others issued simultaneously herewith, does not exceed any limitation imposed by law or the Constitution of the State of Wisconsin; and that a direct annual irrepealable tax has been levied sufficient to pay this Bond, together with the interest thereon, when and as payable.

This Bond is deemed to be a "qualified tax-exempt obligation" pursuant to the provisions of Section 265(b)(3)(D)(ii) of the Internal Revenue Code of 1986, as amended.

This Bond is transferable only upon the books of the District kept for that purpose at the office of the Fiscal Agent, only in the event that the Depository does not continue to act as depository for the Bonds, and the District appoints another depository, upon surrender of the Bond to the Fiscal Agent, by the registered owner in person or his duly authorized attorney, upon surrender of this Bond together with a written instrument of transfer (which may be endorsed hereon) satisfactory to the Fiscal Agent duly executed by the registered owner or his duly authorized attorney. Thereupon a new fully registered Bond in the same aggregate principal amount shall be issued to the new depository in exchange therefor and upon the payment of a charge sufficient to reimburse the District for any tax, fee or other governmental charge required to be paid with respect to such registration. The Fiscal Agent shall not be obliged to make any transfer of the Bonds (i) after the Record Date, (ii) during the fifteen (15) calendar days preceding the date of any publication of notice of any proposed redemption of the Bonds, or (iii) with respect to any particular Bond, after such Bond has been called for redemption. The Fiscal Agent and District may treat and consider the Depository in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the

-3- QB\18880817.1

principal or redemption price hereof and interest due hereon and for all other purposes whatsoever. The Bonds are issuable solely as negotiable, fully-registered Bonds without coupons in the denomination of $5,000 or any integral multiple thereof.

No delay or omission on the part of the owner hereof to exercise any right hereunder shall impair such right or be considered as a waiver thereof or as a waiver of or acquiescence in any default hereunder.

IN WITNESS WHEREOF, the Racine Unified School District, Racine County, Wisconsin, by its governing body, having no official or corporate seal, has caused this Bond to be executed for it and in its name by the manual or facsimile signatures of its duly qualified District President and District Clerk all as of the original date of issue specified above.

RACINE UNIFIED SCHOOL DISTRICT, RACINE COUNTY, WISCONSIN

By: ______________________________ Dennis Wiser District President

By: ______________________________ Gretchen L. Warner District Clerk

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FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto ____________________________________________________________________________

ASSIGNMENT

(Name and Address of Assignee)

____________________________________________________________________________ (Social Security or other Identifying Number of Assignee)

the within Bond and all rights thereunder and hereby irrevocably constitutes and appoints ______________________________________, Legal Representative, to transfer said Bond on the books kept for registration thereof, with full power of substitution in the premises.

Dated: _____________________

Signature Guaranteed:

_____________________________ ________________________________ (e.g. Bank, Trust Company (Depository or Nominee Name) or Securities Firm)

NOTICE: This signature must correspond with the name of the Depository or Nominee Name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever.

____________________________ (Authorized Officer)

QB\18880817.1

EXHIBIT F

NOTICE OF FULL CALL*

Regarding

RACINE UNIFIED SCHOOL DISTRICT RACINE COUNTY, WISCONSIN NOTE ANTICIPATION NOTES DATED NOVEMBER 1, 2012

NOTICE IS HEREBY GIVEN that the Notes of the above-referenced issue which mature on the date and in the amount; bear interest at the rate; and have a CUSIP No. as set forth below have been called by the District for prior payment on February 1, 2013 at a redemption price equal to 100% of the principal amount thereof plus accrued interest to the date of prepayment:

Maturity Date Principal Amount Interest Rate CUSIP No.

11/01/13 $10,000,000 2.75% 750046JQ8

The District shall deposit federal or other immediately available funds sufficient for such redemption at the office of The Depository Trust Company on or before February 1, 2013.

Said Notes will cease to bear interest on February 1, 2013.

By Order of the School Board Racine Unified School District District Clerk

Dated ________________________

_____________ * To be provided by facsimile transmission, registered or certified mail, overnight express delivery or electronic

transmission to The Depository Trust Company, Attn: Supervisor, Call Notification Department, 55 Water Street, 50th Floor, New York, NY 10041-0099, not less than thirty (30) days nor more than sixty (60) days prior to February 1, 2013 and to the MSRB.

In addition, if the Notes are subject to the continuing disclosure requirements of SEC Rule 15c2-12 effective July 3, 1995, this Notice should be filed electronically with the MSRB through the Electronic Municipal Market Access (EMMA) System website at www.emma.msrb.org.

http://www.emma.msrb.org/�

BOARD OF EDUCATION

November 19, 2012 Financial Operations

AGENDA ITEM: Audit Report 2011/2012 Fiscal Year

PRESENTING: David Hazen

DESCRIPTION: Each year the District financials are subject to an outside independent audit. The auditor has completed the audit of 2011/2012 fiscal year end. This is a presentation of the results.

FISCAL NOTE: See attached audit report. No significant changes to the districts financials.

RECOMMENDATION: Recommend receiving the audit report as presented.

RACINE UNIFIED SCHOOL DISTRICT RACINE, WISCONSIN

ANNUAL FINANCIAL REPORT

JUNE 30, 2012

RACINE UNIFIED SCHOOL DISTRICT Racine, Wisconsin

June 30, 2012

Table of Contents

Page No. INDEPENDENT AUDITORS’ REPORT ON BASIC FINANCIAL STATEMENTS

AND SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND SCHEDULE OF STATE FINANCIAL ASSISTANCE 1-2

MANAGEMENT’S DISCUSSION AND ANALYSIS 3-9

BASIC FINANCIAL STATEMENTS District-wide Financial Statements

Statement of Net Assets 10

Statement of Activities 11 - 12

Fund Financial Statements Balance Sheet - Governmental Funds 13-14

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 15 - 16

Statement of Net Assets - Food Service (Nonmajor) Proprietary Fund 17

Statement of Revenues, Expenses and Changes in Net Assets - Food Service (Nonmajor) Proprietary Fund 18

Statement of Cash Flows - Food Service (Nonmajor) Proprietary Fund 19

Statement of Net Assets - Fiduciary Funds 20

Statement of Changes in Net Assets - Fiduciary Funds 21

Notes to Basic Financial Statements 22 - 43

REQUIRED SUPPLEMENTAL INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual -

General Fund - Budgetary Basis 44

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Special Education Special Revenue Fund - Budgetary Basis 45

Schedule of Funding Progress 46

Schedule of Employer Contributions - Other Post-Employment Benefit Plan 47

Notes to Required Supplemental Information 48

SUPPLEMENTAL INFORMATION Combining Balance Sheet - Non major Governmental Funds 49 - 50

Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 51 - 52

Schedule of Changes in Assets and Liabilities - Pupil Activity Funds 53


June 30, 2012

Table of Contents

Page No. ADDITIONAL INDEPENDENT AUDITORS’ REPORT FOR BASIC FINANCIAL STATEMENTS

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 54 - 55

FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Report on Compliance with Requirements That Could Have a Direct and Material Effect

on Each Major Federal and State Program and on Internal Control Over Compliance in Accordance with OMB Circular A-i 33 and the State Single Audit Guidelines 56 - 57

Schedule of Expenditures of Federal Awards

58 - 63

Schedule of State Financial Assistance 64 - 65

Notes to the Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance 66

Schedule of Findings and Questioned Costs 67 - 72

Schedule of Prior Year Audit Findings and Corrective Action Plan 73

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Schenck CPAs AND SO MUCH MORE

INDEPENDENT AUDITORS’ REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL

AWARDS AND SCHEDULE OF STATE FINANCIAL ASSISTANCE

To the Board of Education Racine Unified School District Racine, Wisconsin

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Racine Unified School District ("the District") as of and for the year ended June 30, 2012, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s Board of Education and management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized information has been derived from the District’s 2011 financial statements and, in our report dated November 30, 2011 we expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the District as of June 30, 2012, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated November 2, 2012, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Appleton Fond du Lac Green Bay Manitowoc Milwaukee Oshkosh Sheboygan Stevens Point Wausau

A ON 800-236-2246 schencksc.com INTERNATIONAL

Schencksc

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison information, the schedule of funding progress and the schedule of employer contributions on pages 3 through 9 and 44 through 48 be presented to supplement the basic financial statements. Such information, although not part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s response to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The financial information listed in the table of contents as supplemental information, and the accompanying schedule of expenditures of federal awards and schedule of state financial assistance, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit Guidelines issued by the Wisconsin Department of Administration, are presented for purposes of additional analysis and are not a required part of the financial statements. The supplemental information and schedules of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Certified Public Accountants Green Bay, Wisconsin November 2, 2012

2

MANAGEMENT’S DISCUSSION AND ANALYSIS

- SCHo0 ,

Racine Unified School District 3109 Mount Pleasant Street, Racine, WI 53404 Financial and Budget Services

Management’s Discussion and Analysis For the Year Ended June 30, 2012

FINANCIAL HIGHLIGHTS

. The District’s overall financial position, as reflected in total net assets, increased $758,067 during the 2011-12 fiscal year. (See pages 11 -12)

The District continued to implement GASB Statement No. 45, Accounting and Financial Reporting by Employers for Post-retirement Benefits Other than Pensions during the 2012 year. The actuarially determined expense was $2,690,204 greater than the District’s post-retirement plan contributions for the year compared to $1,175,838 for the prior year. (See page 40)

. The District’s governmental fund balance reported an increase of $13,035,948 compared to a decrease of $4,486,006 in the prior year. $3,369,081 of the prior year decrease was in the Capital Projects Fund. (See pages 15- 16)

. The amount of tax and revenue anticipation notes (TRANS) reported at year end was zero, down from $28,300,000 at year end the previous year. (See pages 13 and 34)

OVERVIEW OF THE FINANCIAL STATEMENTS

The basic financial statements are comprised of (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. In addition, other information supplementary to the basic financial statements is provided.

Government-Wide Financial Statements

The government-wide financial statements are the Statement of Net Assets and the Statement of Activities. These statements present an aggregate view of the District’s finances in a manner similar to private-sector business. Both statements distinguish governmental activities from business-type activities.

. The Statement of Net Assets presents information on all of the District’s assets and liabilities, with the difference between the two reported as net assets.

. The Statement of Activities presents information showing how the District’s net assets changed during the year.

’3

Fund Financial Statements

The District also produces fund financial statements, the Balance Sheet and the Statement of Revenue, Expenditures, and Changes in Fund Balance.

A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities. The District, like other state and local governments, uses fund accounting to demonstrate compliance with finance related legal requirements. Fund statements generally report operations in more detail than the district-wide statements.

The District has three types of funds: governmental, proprietary, and fiduciary. Governmental funds are: general, special revenue, special education, special project, debt service, and capital projects. The District has one proprietary fund, the food service fund. The District has three fiduciary funds. A private purpose trust fund accounts for financial resources to benefit specified beneficiaries, an employee benefit trust fund accounts for District and retiree contributions for post-retirement health and dental coverage and an agency fund to account for funds of student organizations.

Financial information is presented separately on the Balance Sheet and the Statement of Revenue, Expenditures, and Changes in Fund Balance for the general fund as it is considered to be major funds. Data for all other funds is combined into a single aggregated column. Data for each of these individual non-major funds is provided separately as supplementary information.

The proprietary fund statements for the District’s food service program are prepared on the same basis of accounting and measurement focus as the district-wide financial statements. In addition, the District provides a statement of cash flows for the proprietary funds.

The District serves as a trustee, or fiduciary, for student organizations and for certain trust beneficiaries. The assets of these funds do not directly benefit nor are under the direct control of the District. The District’s responsibility is limited to ensuring the assets reported in these funds are used only for their intended purposes. Fiduciary activities are excluded from the district-wide financial statements because the district cannot use these assets to finance its operations.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison statement for the general fund has been provided to demonstrate compliance with this budget.

Notes to the Financial Statements

The notes to the financial statements provide additional information that is essential to the full understanding of the data provided in the district-wide and fund financial statements. The notes follow the financial statements for the fiduciary funds.

FAI -J

FINANCIAL ANALYSIS

The District as a Whole

Net Assets

Table 1, below, provides a summary of the District’s statement of net assets for the year ended June 30, 2012 with a comparison to the prior year.

Table I -- Condensed Statement of Net Assets

(in thousands of dollars)

Governmental Business-type Totals % Activities I Activities School District Change

2012 I 2011 2012 I 2011 2012 I 2011 2011-12

Assets Current assets $ 62,358 $ 85,994 $ 1,768 $ 1,127 $ 64,126 $ 87,121 -26.4%

Capital assets 62,534 79,253 304 340 62,838 79,593 -21.1% Total Assets 124.892 165,247 2,072 1,467 126,964 166,714 -23.8%

Liabilities Long-term debt 46,800 Other liabilities 25,459 Total Liabilities 72,259

Net Assets Invested in capital assets,

net of related debt 42,399 Restricted 1,647 Unrestricted 8,587 Total Net Assets $ 52,633

50,764 - - 46,800 50,764 -7.8%

62,011 43 34 25,502 62,045 -58.9%

112,775 43 34 72,302 112,809 -56.0%

66,207 304 340 42,703 66,547 -35.8% 249 1,725 1,093 3,372 1,342 151.3%

13,984) - - 8,587 (13,984) 161.4% 52,472 $ 2,029 $ 1,433 $ 54,662 $ 53,905 1.4%

(The calculation of net assets uses a historical cost for land and school buildings that may not accurately reflect the current market value.)

5

Change in Net Assets

Table 2, below, shows the changes in net assets for the fiscal year ended June 30, 2012 with a comparison to the prior year.

Table 2 -- Changes in Net Assets


Governmental Business-type Totals %

Activities Activities School District Change

2012 I 2011 2012 I 2011 2012 I 2011 2011-12

Revenues Program Revenues Charges for services Operating grants and

contributions General Revenues Property taxes State Formula aid Interest Other

Total Revenues

Expenses Instruction Pupil and instructional

services Administration and

business Central services and

Insurance Interest on debt Non-program Miscellaneous Total Expenses

Increase (Decrease) in Net Assets

$ 1,117 $ 845 $ 1,844 $ 2,028 $ 2,961 $ 2,873 3.1%

38,222 47,312 6,460 5,998 44,682 53,310 -16.2%

81,491 78,079 - - 81,491 78,079 4.4%

125,362 137,211 - - 125,362 137,211 -8.6%

30 25 30 25 20.0%

1,471 1,739 - 51 1,471 1,790 -17.8%

247.693 265,211 8,304 8,077 255,997 273,288 -6.3%

136,310 168,435 - - 136,310 168,435 -19.1%

28,070 32,505 - - 28,070 32,505 -13.6%

45,011 48,291 7,707 7,780 52,718 56,071 -6.0%

6,747 10,605 - - 6,747 10,605 -36.4%

3,611 1,335 - - 3,611 1,335 170.5%

7,445 6,909 - - 7,445 6,909 7.8%

20,338 771 - - 20,338 771 2537.9%

247,532 268,851 7,707 7,780 255,239 276,631 -8.4%

161 $ (3,640) $ 597 $ 297 $ 758 $

General revenues (all revenue except operating grants and contributions and charges for services) provide about 84% of the funding for governmental activities and 0% of the funding for business-type activities. Racine Unified School district relies on property taxes for 33% of its governmental activities.

Governmental Activities

Net Cost of Governmental Activities

Table 3 reports the cost of seven major District activities. The table also shows each activity’s net cost (total cost less fees generated by the activities and intergovernmental aid provided for specific programs). In all categories, program revenue did not keep pace with the increased cost of providing the service, thereby increasing reliance on general revenues.

Table 3 Total and Net Cost of Governmental Activities


Total cost Net cost %

of Services of Services Change

2012 I 2011 2012 I 2011 2011-12

Instruction $ 136,310 $ 168,435 $ 107,270 $ 132,156 23.2%

Pupil and instructional services 28,070 32,505 19,064 21,660 13.6%

Administration and business 45,011 48,291 44,077 47,371 7.5%

Central services and insurance 6,747 10,605 6,722 10,597 57.6%

Interest ondebt 3,611 1,335 3,433 1,335 -61.1%

Non-program 7,445 6,909 7,445 6,909 -7.2%

Miscellaneous 20,338 771 20,182 666 -96.7%

Totals $ 247,532 $ 268,851 $ 208,193 $ 220,694 6.0%

Business-Type Activities

Revenue for the district’s business-type activities (food service program) was comprised of charges for services and federal and state reimbursements (see Table 2).

. Federal and state reimbursement for meals, including payments for free and reduced lunches, was $6.5 million while charges for services were $1.8 million. Overall revenues increased by $278 thousand.

Expenses decreased by $71 thousand to $7.7 million.

. The food service operation reported a gain of $597 thousand compared to a gain of $247 thousand for the prior year.

7

Governmental Funds

The District completed the year with a total governmental fund balance of $36.8 million, an increase of $13.0 million from the prior year.

� Total general fund revenue for the year was $4.1 million less than budget due primarily to lower reimbursements for expenditures from the federal government.

� Total general fund program expenditures, including non-program transactions, was less than the budget by $5.4 million.

� The debt service funds fund balance had a net increase of $6 thousand. The debt service fund balance will fluctuate from year to year because the fund balance must be at least equal to the amount of debt payments that are scheduled prior to January 20th of the subsequent year. The typical debt service schedule for the District requires interest payments prior to January 20th with an additional interest payment and principal payment occurring in March of each year.

� For fiscal year 2011-2012, the capital projects funds fund balance decreased by $831 thousand as ASC and building repair debt revenues from 2011 were expended.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At the end of the 2012 fiscal year, the District had net capital assets of $62.8 million in a broad range of capital assets, including buildings, sites, furniture, and equipment (see Table 4). 2011-12 activity primarily consisted of two building sales. Additional information about capital assets can be found in the notes to the financial statements.

Table 4 Net Capital Assets


Governmental Business-type Totals % Activities Activities School District Change

2012 F 2011 ---T-2011 2012 2012 I 2011 2011-12 Land $ 2,475 $ 2,565 $ - $ - $ 2,475 $ 2,565 -3.5% Work in progress 287 12,605 - - 287 12,605 -97.7% Site improvements 2,387 619 - - 2,387 619 285.6% Buildings 47,555 55,783 - - 47,555 55,783 -14.8% Machinery and

equipment 9,830 7,681 304 340 10,134 8,021 26.3% Total $ 62,534 $ 79,253 $ 304 $ 340 $ 62,838 $ 79,593 -21.1%

H;

Long-Term Debt and Other Obligations

At year end, the district had $27.6 million in general obligation debt outstanding, a decrease of 6.7% from last year. Additional information about the district’s long-term liabilities is presented in the notes to the financial statements.

Table 5 Outstanding Long-term Obligations


Governmental Business-type Totals % Activities Activities School District Change

2012 I 2011 2012 I 2011 2012 I 2011 2011-12 General obligation debt $ 27,611 $ 29,596 $ - $ - $ 27,611 $ 29,596 -6.7% Premium on debt 240 81 - - 240 81 196.3% Capital leases 1,559 6,696 - - 1,559 6,696 -76.7% Loss on advance

refunding (650) (814) - - (650) (814) -20.1% Other post-employment

benefits 16,581 13,891 - - 16,581 13,891 19.4% Pension benefits 189 - - - 189 - 0.0% Compensated

absences 1,270 1,314 - - 1,270 1,314 -3.30// Total $ 46,800 $ 50,764 $ - $ - $ 46,800 $ 50,764 -7.8%

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the district’s finances and to demonstrate the district’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact David Hazen, Chief Financial Officer, Racine Unified School District, 3109 Mount Pleasant St., Racine, WI 53404.

we

BASIC FINANCIAL STATEMENTS


Statement of Net Assets June 30, 2012

(With summarized information as of June 30, 2011)


Business-type Activities

Totals

2012 2011

$ 27,632,937 $ - $ 27,632,937 $ 44,724,600

19,018,070 - 19,018,070 18,323,934 3,913,223 5,146 3,918,369 6,247,808

(1,584,609) 1584,609 - -

11,013,372 178,776 11,192,148 12,767,874 2,042,291 - 2,042,291 4,618,273

322,460 - 322,460 438,887

286,766 - 286,766 12,605,315 2,474,986 - 2,474,986 2,564,682 6,060,174 - 6,060,174 4,192,252

98,501,082 - 98,501,082 118,221,404 23,038,641 1,305,749 24,344,390 21,456,220

(67,827,926) (1,001,651) (68,829,577) (79,447,642)

124,891,467 2,072,629 126,964,096 166,713,607

28,300,000 4,592,826 346 4,593,172 7,460,840

19,482,156 - 19,482,156 24,653,665 263,437 - 263,437 389,435

1,120,454 42,281 1,162,735 1,240,553

5,061,815 - 5,061,815 12,288,047

41,737,906 - 41,737,906 38,476,259

72,258,594 42,627 72,301,221 112,808,799

42,398,814 304,098 42,702,912 66,546,309

124,313 - 124,313 114,145 32,605 - 32,605 32,945

395,900 - 395,900 134,315 1,094,182 - 1,094,182 154,503

- 1,725,904 1,725,904 1,093,479 8,587,059 - 8,587,059 (14,170,888)

$ 52,632,873 $ 2,030,002 $ 54,662,875 $ 53,904,808

ASSETS Cash and investments Receivables

Taxes Accounts

Internal balances Due from other governments Inventories and prepaid items Deferred charges - issuance costs Capital assets

Construction in progress Land Site improvements Buildings Machinery and equipment Less: Accumulated depreciation

TOTAL ASSETS

LIABILITIES Short-term notes payable Accounts payable Accrued payroll liabilities Accrued interest payable Unearned revenues Long-term obligations

Due within one year Due in more than one year

TOTAL LIABILITIES

NET ASSETS Invested in capital assets, net of related debt Restricted for

Private gifts and donations Grant expenditures Debt service Community service programs Food service

Unrestricted (deficit)

TOTAL NET ASSETS

The notes to the basic financial statements are an integral part of this statement.

10


Statement of Activities For the Year Ended June 30, 2012

(With summarized financial information for the year ended June 30, 2011)

Program Revenues Operating

Charges for Grants and unctions/Programs Expenses Services Contributions

Governmental Activities Instruction

$ 136,310,443 $ 679,492 $ 28,360,780 Support Services Support services

100,111,194 103,149 9,860,745 Interest and fiscal charges

3,611,310 178,377 -

Community services

54,034 156,372 - Non-program transactions

7,444,672 - -

Total Governmental Activities

247,531,653 1,117,390 38,221,525

Business-type Activities School food service program

7,707,375 1,844,311 6,460,083

Total School District

$ 255,239,028 $ 2,961,701 $ 44,681,608

General revenues Property taxes, levied for general purposes Property taxes, levied for debt service Other taxes State and federal aids not restricted to

specific functions Interest and investment earnings Miscellaneous Total General Revenues

Change in net assets

Net assets - July 1

Net assets - June 30


11

Net (Expense) Revenue and Changes in Net Assets

Totals Governmental Business-type

Activities Activities 2012 2011

$ (107,270,171) $ - $ (107,270,171) $ (132,155,380)

(90,147,300) - (90,147,300) (80,218,121) (3,432,933) - (3,432,933) (1,335,475)

102,338 - 102,338 (75,872) (7,444,672) - (7,444,672) (6,909,126)

(208,192,738) - (208,192,738) (220,693,974)

- 597,019 597,019 246,076

(208,192,738) 597,019 (207,595,719) (220,447,898)

77,492,568 - 77,492,568 74,399,509 3,998,575 - 3,998,575 3,679,016

79,637 - 79,637 31,813

125,362,139 - 125,362,139 137,210,638 30,124 - 30,124 25,955

1,390,743 - 1,390,743 1,758,636 208,353,786 - 208,353,786 217,105,567

161,048 597,019 758,067 (3,342,331)

52,471,825 1,432,983 53,904,808 57,247,139

$ 52,632,873 $ 2,030,002 $ 54,662,875 $ 53,904,808

12


Balance Sheet Governmental Funds

June 30, 2012 (With summarized information as of June 30, 2011)

General

Other Governmental

Funds

Total Governmental Funds 2012 7-2011

$ 27,632,937 $ - $ 27,632,937 $ 44,724,600

19,018,070 - 19,018,070 18,323,934 3,843,061 70,162 3,913,223 6,241,581

272,535 3,603,642 3,876,177 4,485,199 10,708,232 305,140 11,013,372 12,541,896

1,591,068 - 1,591,068 1,428,676 436,223 15,000 451,223 3,189,597

$ 63,502,126 $ 3,993,944 $ 67,496,070 $ 90,935,483

ASSETS Cash and investments Receivables

Taxes Accounts

Due from other funds Due from other governments Inventories Prepaid items

TOTAL ASSETS

LIABILITIES AND FUND BALANCES Liabilities

Short-term notes payable Accounts payable Accrued salaries and related items Accrued interest payable Due to other funds Deferred revenues Total Liabilities

Fund Balances Nonspendable

Inventories Prepaid items

Restricted Private gifts and donations Grant expenditures Construction of capital assets Debt service funds Community service programs

Assigned Referendum generated fund balance Health care cost stabilization Construction of capital assets

Unassigned, reported in General fund

Total Fund Balances

TOTAL LIABILITIES AND FUND BALANCES

(Continued)

$ - $ - $ - $ 28,300,000

4,592,826 - 4,592,826 7,460,507

19,482,156 - 19,482,156 24,653,652 - - - 130,052

5,188,251 272,535 5,460,786 5,380,368

1,120,454 - 1,120,454 1,207,004

30,383,687 272,535 30,656,222 67,131,583

1,591,068 - 1,591,068 1,428,676 436,223 15,000 451,223 3,189,597

- 124,313 124,313 114,145 - 32,605 32,605 32,945 - 1,795,972 1,795,972 2,004,222 - 659,337 659,337 653,081 - 1,094,182 1,094,182 154,503

10,000,000 - 10,000,000 -

8,000,000 - 8,000,000 -

600,000 - 600,000 -

12,491,148 - 12,491,148 16,226,731

33,118,439 3,721,409 36,839,848 23,803,900

$ 63,502,126 $ 3,993,944 $ 67,496,070 $ 90,935,483

13


Balance Sheet (Continued) Governmental Funds

June 30, 2012 (With summarized information as of June 30, 2011)

Total Governmental Funds 2012 I 2011

Reconciliation to the Statement of Net Assets Total Fund Balances from previous page

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.

Some liabilities, including bonds and notes payable, are not due and payable in the current period and therefore are not reported in the funds.

Bonds and notes payable Premium on long-term debt Capital leases payable Other post-employment benefits Pension benefits Compensated absences Accrued interest payable Loss on advance refunding Debt issuance costs

Net Assets of Governmental Activities as Reported on the Statement of Net Assets (see page 10)

$ 36,839,848 $ 23,803,900

62,533,723 79,252,727

(27,611,331) (29,596,497) (240,073) (80,561)

(1,559,270) (6,696,071) (16,580,817) (13,890,613)

(188,257) -

(1,269,855) (1,314,243) (263,437) (259,383) 649,882 813,679 322,460 438,887

$ 52,632,873 $ 52,471,825


14


Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds

For the Year Ended June 30, 2012 (With summarized financial information for the year ended June 30, 2011)

General

Other Governmental

Funds


$ 76,642,568 $ 4,848,575 $ 81,491,143 $ 78,078,525 679,091 328,205 1,007,296 964,619

80,686 - 80,686 110,637 4,996 - 4,996 1,600

144,341,854 - 144,341,854 159,511,110 18,601,270 640,540 19,241,810 24,860,487

1,365,791 - 1,365,791 2,558,109 241,716,256 5,817,320 247,533,576 266,085,087

86,160,232 387,923 86,548,155 114,104,561 4,330,759 - 4,330,759 5,136,344

36,482,621 - 36,482,621 43,036,503 6,414,550 89,694 6,504,244 7,018,915

133,388,162 477,617 133,865,779 169,296,323

13,284,393 1,006 13,285,399 15,817,683 11,330,881 186,450 11,517,331 13,646,529 2,174,104 55,973 2,230,077 2,385,096

10,343,165 320 10,343,485 12,238,599 2,454,446 - 2,454,446 2,906,288

24,741,593 2,774,950 27,516,543 36,071,217 8,538,016 8,655 8,546,671 8,277,851 5,893,991 6,723 5,900,714 8,314,437 1,379,672 - 1,379,672 931,084

738,116 1,157 739,273 595,092 80,878,377 3,035,234 83,913,611 101,183,876

3,367,959 8,860,166 12,228,125 5,860,987 826,936 1,191,608 2,018,544 1,215,802

2,922,705 - 2,922,705 - 7,117,600 10,051,774 17,169,374 7,076,789

- 57,569 57,569 178,351

7,154,552 - 7,154,552 5,912,904 235,464 - 235,464 406,351

54,656 - 54,656 589,871 7,444,672 - 7,444,672 6,909,126

228,828,811 13,622,194 242,451 005 284,644,465

12,887,445 (7,804,874) 5,082,571 (18,559,378)

6,875,000 6,875,000 5,950,000 - - 7,675,957

- 178,377 178,377 - - 900,000 900,000 447,415

23,935 - 23,935 283,482 - (23,935) (23,935) (283,482)

23,935 7,929,442 7,953,377 14,073,372

12,911,380 124,568 13,035,948 (4,486,006)

20,207,059 3,596,841 23,803,900 28,289,906

$ 33,118,439 $ 3,721,409 $ 36,839,848 $ 23803,900

Revenues Property taxes Other local sources lnterdistrict sources Intermediate sources State sources Federal sources Other sources Total Revenues

Expenditures Instruction

Regular instruction Vocational instruction Special education instruction Other instruction Total Instruction

Support Services Pupil services Instructional staff services General administration services School administration services Business services Operation and maintenance of plant Pupil transportation services Central services Insurance Other support services Total Support Services

Debt Service Principal Interest and fiscal charges Payment to lease defeasance escrow agent Total Debt Service

Community Services Non-program

General tuition payments Special education tuition payments Adjustments and refunds Total Non-program

Total Expenditures

Excess of Revenues Over (Under) Expenditures

Other Financing Sources (Uses) Long-term debt issued Capital leases Premium on long term debt issued Sale of capital assets Transfers in Transfers out Total Other Financing Sources (Uses)

Net Change in Fund Balances

Fund Balances - July 1

Fund Balances - June 30

(Continued)

15


Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Governmental Funds



Reconciliation to the Statement of Activities Net Change in Fund Balances from previous page $ 13,035,948 $ (4,486,006)

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay reported in governmental fund statements $ 7,767,321 Depreciation expense reported in the statement of activities (3,302,592)

Amount in which depreciation is (greater) less than capital outlays 4,464,729 10,161,234

In governmental funds the entire proceeds, if any, from the disposal of capital assets is reported as an other financing source. In the statement of activities only the loss on the disposal is reported. (21,183,733) (1,335,555)

Certain employee benefits are reported in the governmental funds when amounts are paid. The statement of activities reports the value of benefits earned during the year. The accrual of these benefits (increased) decreased by: 44,388 (54,050)

The District’s contributions to its employee benefit trust fund to finance its post-retirement benefits have been less than the annual required contribution (ARC). The payments to the employee benefit trust fund are recorded as an expenditure when paid in the governmental statements. The statement of activities reports the ARC as the expense. The difference is: (2,690,204) (1,175,838)

The District maintains a pension plan for employees and funds it on a pay-as-you-go basis. The payments made for benefits throughout the year are recorded as an expenditure when paid in the governmental statements. The statement of activities reports the annual required contribution as the expense. The difference is: (188,257) -

The District issued debt during the year. The amount of the debt is reported in the governmental funds as a source of financing. In the statement of net asset, however, debt constitutes a long-term liability. The amount of debt issued is:

General obligation debt issued by District (6,875,000) (5,950,000) Capital leases issued by the District - (6,540,622)

Repayment of principal on long-term debt is reported in the governmental funds as an expenditure, but is reported as a reduction in long-term debt in the statement of net assets and does not affect the statement of activities. The amount of long-term debt principal payments:

General obligation debt retired by District 8,860,166 3,630,361 Capital leases retired by the District 5,136,801 2,230,626

Interest payments on outstanding debt are reported in the governmental funds as an expenditure when paid. In the statement of activities interest is reported as it accrues. (4,054) (17,033)

Governmental funds report debt premiums, discounts and issuance costs as other financing sources (uses) or expenditures. However, in the statement of the net assets, they are deferred and reported as other assets or deductions from long-term debt and allocated over the life of the debt on the statement of activities and included in interest expense.

Premium on long-term debt (159,512) 15,107 Loss on advance refunding (163,797) (163,797) Debt issuance costs (116,427) 46,050

Change in Net Assets of Governmental Activities as Reported on the Statement of Activities (see pages 11 - 12) $ 161,048 $ (3,639,523)


16


Statement of Net Assets - Food Service Proprietary Fund

June 30, 2012 (With comparative totals as of June 30, 2011)

I 2012 I 2011 I ASSETS

Receivables Accounts $ 5,146 $ 6,227

Due from other funds 1,584,609 895,169 Due from other governments 178,776 225,978 Capital assets

Machinery and equipment 1,305,749 1,300,415 Less: Accumulated depreciation (1,001,651) (960,911)

TOTAL ASSETS 2,072,629 1,466,878

LIABILITIES Accounts payable 346 333 Accrued payroll liabilities - 13 Unearned revenues 42,281 33,549

TOTAL LIABILITIES 42,627 33,895

NET ASSETS Invested in capital assets, net of related debt 304,098 339,504 Unrestricted 1,725,904 1,093,479

TOTAL NET ASSETS $ 2,030,002 $ 1,432,983


17


Statement of Revenues, Expenses and Changes in Net Assets - Food Service Proprietary Fund

For the Year Ended June 30, 2012 (With comparative totals for the year ended June 30, 2011)

I 2012 I 2011 I Operating Revenues

Food sales $ 1,820,554 $ 2,002,810 State sources 142,328 125,032 Federal sources 6,317,755 5,873,164 Other sources 23,757 24,906 Total Operating Revenues 8,304,394 8,025,912

Operating Expenses Salaries and wages 364,489 531,650 Employer paid benefits 151,565 326,083 Purchased services 6,132,406 6,266,690 Supplies and materials 995,423 582,885 Depreciation 63,492 71,049 Total Operating Expenses 7,707,375 7,778,357

Operating Income 597,019 247,555

Nonoperating Expense Interest expense - (1,479)

Income before Transfers 597,019 246,076

Transfers In - 51,116

Change in Net Assets 597,019 297,192

Net Assets -July 1 1,432,983 1,135,791

Net Assets - June 30 $ 2,030,002 $ 1,432,983


18


Statement of Cash Flows Food Service Proprietary Fund

For the Year Ended June 30, 2012 (With comparative totals for the year ended June 30, 2011)

I 2012 I 2011 I Cash Flows from Operating Activities

Cash received from user charges $ 1,854,124 $ 2,025,581 Cash received from other government payments 6,038,228 5,543,457 Cash payments to employees (516,067) (857,720) Cash payments to suppliers (6,658,759) (6,447,907) Net Cash Provided for Operating Activities 717,526 263,411

Cash Flows from Noncapital Financing Activities Change in temporary cash advance (689,440) (240,933)

Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (28,086) (20,999) Interest payments on long-term debt - (1,479) Net Cash Used by Capital and Related Financing Activities (28,086) (22,478)

Change in Cash and Cash Equivalents

Cash and Cash Equivalents - July 1 - -

Cash and Cash Equivalents - June 30

Reconciliation of Operating Income to Net Cash Provided for Operating Activities:

Operating income $ 597,019 $ 247,555 Adjustments to reconcile change in operating income to net cash provided for operating activities

Depreciation 63,492 71,049 Changes in assets and liabilities

Accounts receivable 1,081 - Due from other governments 47,202 (53,064) Accounts payable 13 (7) Accrued payroll liabilities (13) 13 Unearned revenue 8,732 (2,135)

Net Cash Provided for Operating Activities $ 717,526 $ 263,411

Noncash Activities: Commodities Received From U.S. Department of Agriculture $ 469,057 $ 401 , 675


19


Statement of Net Assets Fiduciary Funds June 30, 2012

(With summarized information as of June 30, 2011)

Private Purpose

Trust Fund

Employee Benefit

Trust Fund

Agency Fund Total

Fiduciary Funds Pupil Activity 2012 I 2011

$ 42,435 $ 8,561,849 $ 1,100,728 $ 9,705,012 $ 6,015,777 155,655 - - 155,655 2,494,045

$ 198,090 $ 8,561,849 $ 1,100,728 $ 9,860,667 $ 8,509,822

$ 176,592 $ 2,187,386 $ - $ 2,363,978 $ 4,216,011 - - 1,100,728 1,100,728 1,033,126

176,592 2,187,386 1,100,728 3,464,706 5,249,137

21,498 - - 21,498 17,088 - 6,374,463 - 6,374,463 3,243,597

21,498 6,374,463 - 6,395,961 3,260,685

$ 198 , 090 $ 8,561,849 $ 1,100,728 $ 9,860,667 $ 8,509,822

ASSETS Cash and investments Accounts receivable

TOTAL ASSETS

LIABILITIES Accounts payable Due to student organizations

TOTAL LIABILITIES

NET ASSETS Restricted for

Scholarships Employee benefits

TOTAL NET ASSETS

TOTAL LIABILITIES AND NET ASSETS


20


Statement of Changes in Net Assets Fiduciary Funds


Private Purpose

Trust Fund

Employee Benefit

Trust Fund

Total Fiduciary Funds

2012 I 2011

$ 174,404 $ - $ 174,404 $ -

- 7,981,678 7,981,678 9,345,879 - 272,552 272,552 237,650 - 12,120 12,120 10,566

174,404 8,266,350 8,440,754 9,594,095

169,994 5,135,484 5,305,478 9,164,732 - - - 235,971

169,994 5,135,484 5,305,478 9,400,703

4,410 3,130,866 3,135,276 193,392

17,088 3,243,597 3,260,685 3,067,293

$ 21,498 $ 6,374,463 $ 6,395,961 $ 3,260,685

ADDITIONS Other local sources Contributions

Employer Plan members

Investment earnings Total Additions

DEDUCTIONS Trust fund disbursements Adjustments and refunds Total Deductions

Change in Net Assets

Net Assets - July 1

Net Assets - June 3O


21


Notes to Basic Financial Statements June 30, 2012

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the Racine Unified School District ("the District"), Racine, Wisconsin, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting principles and policies utilized by the District are described below:

1. Reporting Entity The District is organized as a unified school district. The District, governed by a nine member elected school board, operates grades K through 12 and is comprised of all or parts of ten taxing districts.

In accordance with GAAP, the basic financial statements are required to include the District (the primary government) and any separate component units that have a significant operational or financial relationship with the District. The District has not identified any component units that are required to be included in the basic financial statements in accordance with standards established by GASB Statement Nos. 14 and 39.

2. District-Wide and Fund Financial Statements The district-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from district-wide financial statements. Governmental funds include general, special revenue, debt service and capital projects funds. Proprietary funds include enterprise funds. The District has no internal service funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

The District reports the following major governmental funds:

GENERAL FUND

This is the District’s main operating fund. It accounts for all financial activity that is not required to be accounted for in another fund.

The District reports one major proprietary fund. The District uses an enterprise fund to account for their food service operations.

22



NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Additionally, the District reports the following fund types:

The District accounts for resources legally held in trust for scholarship awards as a private-purpose trust fund. Only earnings on the invested resources may be used to support the scholarships.

The employee benefit trust fund is used to account for resources legally held in trust for other post-employment benefits.

The District accounts for assets held as an agent for various student and parent organizations in an agency fund.

3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The district-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to employee benefit programs and claims and judgments, are recorded only when payment is due.

Property taxes are recognized as revenue in the fiscal year for which taxes have been levied. Tuition, grants, fees and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenue of the current fiscal period. All other revenue items are considered to be measurable and available only when the cash is received by the District.

As a general rule the effect of interfund activity has been eliminated from the district-wide financial statements.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s enterprise funds are charges to customers for services. Operating expenses for enterprise funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed.

23




4. Assets, Liabilities and Net Assets or Equity

Cash and Investments Cash and investments are combined in the financial statements. Cash deposits consist of demand and time deposits with financial institutions and are carried at cost. Investments are stated at fair value. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. For purposes of the statement of cash flows, all cash deposits and highly liquid investments with original maturities of three months or less from date of acquisition are considered to be cash equivalents.

b. Accounts Receivable Accounts receivable are recorded at gross amount with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that the amount of such allowance would not be material to the basic financial statements.

Property Taxes The aggregate District tax levy is apportioned and certified in November of the current fiscal year for collection to comprising municipalities based on the immediate past October 1 full or "equalized" taxable property values. As permitted by a collecting municipality’s ordinance, taxes must be paid in full or in two or more installments with the first installment payable the subsequent December 31 and a final payment no later than the following July 31. On or before January 15, and by the 20th of each subsequent month thereafter, the District is paid by the collecting municipalities its proportionate share of tax collections received through the last day of the preceding month. On or before August 20, the county treasurer makes full settlement to the District for any remaining balance.

Property taxes are recognized as revenue in the fiscal year levied as they are considered due as of January 1, the date from which interest and penalties accrue for non-payment of a scheduled installment, and full receipt of the entire levy is assured within sixty days of fiscal year end, meeting the availability criteria necessary for property tax revenue recognition by accounting principles generally accepted in the United States of America.

d. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" and "due to other funds" in the fund financial statements.

The amount reported on the statement of net assets for internal balances represents the residual balance outstanding between governmental activities and business-type activities.

e. Inventories Inventories are recorded at cost which approximates market, using the average cost method. Inventories consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are consumed rather than when purchased.

Inventories of governmental fund types in the fund financial statements are offset by nonspendable fund balance to indicate that they do not represent spendable available financial resources.

24




f. Prepaid Items Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid items.

Prepaid items of governmental fund types in the fund financial statements are offset by nonspendable fund balance to indicate that they do not represent spendable available financial resources.

g. Capital Assets Capital assets, which include property, buildings, machinery and equipment, and site improvements assets are reported in the applicable governmental or business-type activities columns in the district-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost as shown below or higher with an estimated useful life in excess of one year.


Business-type I Activities Cost

Assets Site improvements

$ 5,000 $ - Buildings

5,000 - Machinery and equipment

5,000 5,000

Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Capital assets of the District are depreciated using the straight-line method over the following estimated useful lives:


Business-type Activities

Years Assets Site improvements 20 - Buildings 50 - Machinery and equipment 5 - 20 15

Compensated Absences The District’s policy allows employees to earn varying amounts of sick pay for each year employed, accumulating to varying maximum amounts. The District employees are also granted vacation days in varying amounts based on length of service. Upon retirement or termination of employment, the employees are paid for the unused portion of their vacation days. Accumulated sick leave is not paid out upon termination. All vacation leave is accrued when incurred in the district-wide statements and proprietary fund financial statements. Expenditures for these benefits are recognized as paid in the fund financial statements.

25




Deferred Revenues The District reports deferred revenues on its balance sheet. Deferred revenues arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the District before it has a legal claim to them as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the District has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and the revenue is recognized.

Long-term Obligations In the district-wide financial statements, and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. For the district-wide statements and the proprietary fund statements, bond issuance costs are reported as deferred charges while bond discounts and premiums and gains and losses are included with long-term obligations. Issuance costs, bond premiums and discounts are amortized over the life of the issue using the straight-line method. Gains or losses on advanced refundings are amortized over the remaining life of the old debt or life of the new debt, whichever is shorter.

In the fund financial statements, governmental fund types recognize bond issuance costs, bond premium and discounts during the current period. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures while bond premiums and discounts are recorded as other financing sources or uses.

k. Fund Equity

GOVERNMENTAL FUND FINANCIAL STATEMENTS

Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

� Nonspendable fund balance - Amounts that are not in spendable form (such as inventory, prepaid items, or long-term receivables) or are legally or contractually required to remain intact.

� Restricted fund balance - Amounts that are constrained for specific purposes by external parties (such as grantor or bondholders), through constitutional provisions, or by enabling legislation.

� Committed fund balance - Amounts that are constrained for specific purposes by action of the Board of Education. These constraints can only be removed or changed by the Board of Education using the same action that was used to create them.

� Assigned fund balance - Amounts that are constrained for specific purposes by action of District management. The Board of Education has authorized the Chief Financial Officer to assign fund balance. Residual amounts in any governmental fund, other than the General Fund, are also reported as assigned.

� Unassigned fund balance - Amounts that are available for any purpose. Positive unassigned amounts are only reported in the General Fund.

26



NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The District has adopted a fund balance spend down policy regarding the order in which fund balance will be utilized. Where applicable, the policy requires restricted funds to be spent first, followed by committed funds, and then assigned funds. Unassigned funds would be spent last.

DISTRICT-WIDE AND PROPRIETARY FUND STATEMENTS

Equity is classified as net assets and displayed in three components:

� Invested in capital assets, net of related debt - Amount of capital assets, net of accumulated depreciation, less outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

� Restricted net assets - Amount of net assets that are subject to restrictions that are imposed by 1) external groups, such as creditors, grantors, contributors or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation.

� Unrestricted net assets - Net assets that are neither classified as restricted nor as invested in capital assets, net of related debt.

The Board of Education current policy under Coherent Governance is that the general fund balance will increase by $1 million per year which it did for the year ended June 30, 2012. The current general fund balance represents 13.8% of the 2012-13 budgeted expenditures.

5. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

6. Summarized Information The basic financial statements include certain prior-year summarized information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the District’s financial statements for the year ended June 30, 2011, from which the summarized information was derived.

27



NOTE B - STEWARDSHIP AND COMPLIANCE

Budgets and Budgetary Accounting Operating budgets are adopted each fiscal year for all governmental funds in accordance with Section 65.90 of the Wisconsin Statutes. Budgetary expenditure control is exercised at the function level. Reported budget amounts are as originally adopted or as amended by Board of Education resolution.

The District follows these procedures in establishing the budgetary data reflected in the basic financial statements.

� Based upon requests from District staff, District administration recommends budget proposals to the Board of Education.

� The Board of Education prepares a proposed budget including proposed expenditures and the means of financing them for the July 1 through June 30 fiscal year.

� A public notice is published containing a summary of the budget and identifying the time and place where a public hearing will be held on the proposed budget.

� Pursuant to the public budget hearing, the Board of Education may make alterations to the proposed budget.

� Once the Board of Education (following the public hearing) adopts the budget, no changes may be made in the amount of tax to be levied or in the amount of the various appropriations and the purposes of such appropriations unless authorized by a 2/3 vote of the entire Board of Education.

� Appropriations lapse at year end unless authorized as a carryover by the Board of Education. The portion of fund balance representing carryover appropriations is reported as a committed or assigned fund balance in the fund financial statements.

� Encumbrance accounting is used by the District as an extension of formal budgetary control during the year.

� The DPI requires the District to separate special education revenues and expenditures from other general fund amounts.

The District did not have any material violation of legal or contractual provisions for the fiscal year ended June 30, 2012. In addition, no District funds had deficit fund equity as of June 30, 2012.

ew



NOTE C - DETAILED NOTES ON ALL FUNDS

1. Cash and Investments The debt service and capital project funds account for their transactions through separate and distinct bank and investment accounts as required by State Statutes. In addition, the agency fund uses separate and distinct accounts. All other funds share in common bank and investment accounts.

Invested cash consists of deposits and investments that are restricted by Wisconsin Statutes to the following:

Time deposits; repurchase agreements; securities issued by federal, state and local governmental entities; statutorily authorized commercial paper and corporate securities; and the Wisconsin local government investment pool. Investments in the private-purpose trust fund and employee benefit trust fund may be invested in other types of investments as authorized under Wisconsin Statute 881.01, "Uniform Prudent Investor Act".

The carrying amount of the District’s cash and investments totaled $37,337,949 on June 30, 2012 as summarized below:

Petty cash funds $ 1,194 Deposits with financial institutions 29,121,199 Deposits with trustee 863,349 Investments

Wisconsin Investment Series Cooperative (WISC) Investment series 7,320,328

Wisconsin local government investment pool 31,879 $ 37,337,949

Reconciliation to the basic financial statements:

Basic financial statements Cash and investments $ 27,632,937

Fiduciary funds Private purpose trust fund 42,435 Employee benefit trust fund 8,561,849

Agency fund 1,100,728 $ 37,337,949

Deposits and investments of the District are subject to various risks. Presented below is a discussion of the specific risks and the District’s policy related to the risk.

29



NOTE C - DETAILED NOTES ON ALL FUNDS (Continued)

Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Wisconsin statutes require repurchase agreements to be fully collateralized by bonds or securities issued or guaranteed by the federal government or its instrumentalities. The District does not have an additional custodial credit risk policy.

Deposits with financial institutions within the State of Wisconsin are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for time and savings deposits and $250,000 for demand deposits per official custodian per insured depository institution. Deposits with financial institutions located outside the State of Wisconsin are insured by the FDIC in the amount of $250,000 per official custodian per depository institution. In addition, the District’s non-interest bearing transaction accounts are fully insured through December 31, 2012. Also, the State of Wisconsin has a State Guarantee Fund which provides a maximum of $400,000 per public depository above the amount provided by an agency of the U.S. Government. However, due to the relatively small size of the State Guarantee Fund in relation to the Fund’s total coverage, total recovery of insured losses may not be available.

On June 30, 2012, none of the District’s deposits with financial institutions were in excess of federal depository insurance limits.

Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Wisconsin statutes limit investments in securities to the top two ratings assigned by nationally recognized statistical rating organizations. The District does not have an additional credit risk policy. None of the District’s investments are rated.

Investment Type Amount

Exempt From

Disclosure

Rating as of Year End

AAA Aa I Not

Rated

Wisconsin local government investment pool $ 31,879 $ - $ - $ - $ 31,879

Wisconsin Investment Series Cooperative (WISC)

Term series 7,320,328 - 7,320,328 - -

Totals $ 7,352,207 $ - $ 7,320,328 $ - $ 31,879

30




Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Information about the sensitivity of the fair values of the District’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the District’s investments by maturity:

Investment Type Amount

Remaining Maturity (in Months 12 Months

or Less 13 to 24 I Months

25 to 60 I Months More Than 1 60 Months

Wisconsin local government investment pool

Wisconsin Investment Series Cooperative (WISC)

Term series Totals

$ 31,879 $ 31,879 $ - $ - $

7,320,328 7,320,328 - - - $ 7,352,207 $ 7,352,207 $

Investment in Wisconsin Local Government Investment Pool The District has investments in the Wisconsin local government investment pool of $31,879 at year-end. The Wisconsin local government investment pool (LGIP) is part of the State Investment Fund (SIF), and is managed by the State of Wisconsin Investment Board. The SIF is not registered with the Securities and Exchange Commission, but operates under the statutory authority of Wisconsin Chapter 25. The SIF reports the fair value of its underlying assets annually. Participants in the LGIP have the right to withdraw their funds in total on one day’s notice. At June 30, 2012, the fair value of the District’s share of the LGIP’s assets was substantially equal to the carrying value.

31




2. Capital Assets Capital asset activity for the year ended June 30, 2012 was as follows:

Beginning I I Ending Balance Increases Decreases Balance

Governmental activities:

Capital assets, not being depreciated: Sites $ 2,564,682 $ - $ 89,696 $ 2,474,986 Work in progress 12,605,315 - 12,318,549 286,766 Total capital assets, not being depreciated 15,169,997 - 12,408,245 2,761,752

Capital assets, being depreciated: Site improvements Buildings Machinery and equipment Total capital assets being depreciated

Less accumulated depreciation for: Site improvements Buildings Machinery and equipment Total accumulated depreciation

4,192,252 1,872,322 4,400 6,060,174 118,221,404 14,970,516 34,690,838 98,501,082 20,155,805 3,243,032 360,196 23,038,641

142,569,461 20,085,870 35,055,434 127,599,897

3,573,338 103,888 4,400 3,672,826 62,438,521 2,104,514 13,596,801 50,946,234 12,474,872 1,094,190 360,196 13,208,866 78,486,731 3,302,592 13,961,397 67,827,926

Total capital assets, being depreciated, net 64,082,730 16,783,278 21,094,037 59,771,971

Governmental activities capital assets, net $ 79,252,727 $ 16,783,278 $ 33,502,282 62,533,723

Less related long-term debt outstanding 20,134,909

Invested in capital assets, net of related debt $ 42,398,814

Business-type activities:

Capital assets, being depreciated: Machinery and equipment $ 1,300,415 $ 28,086 $ 22,752 $ 1,305,749 Less accumulated depreciation for:

Machinery and equipment 960,911 63,492 22,752 1,001,651

Business-type activities capital assets, net $ 339,504 $ (35,406) $ - $ 304,098

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Depreciation expense was charged to the following functions of the District as follows:

Governmental activities Regular instruction Vocational instruction Special education instruction Other instruction Pupil services Instructional staff services General administration services Operation and maintenance of plant Central services Total depreciation expense - governmental activities

Business-type activities Food service

$ 299,386 70,714

9,403 2,827 5,053

36,581 2,904

2,160,105 715,619

$ 3,302,592

$ 63,492

3. Interfund Receivable, Payables, and Transfers Interfund receivables and payables between individual funds of the District as of June 30, 2012 are detailed below:

Interfund Interfund Receivables Payables

Pooled cash balances General Fund

$ 272,535 $ 5,188,251 Special Revenue Funds

Trust

124,313 - Special projects - 272,535 Community service

1,094,182 - Debt Service Funds

Non-referendum debt service

281,401 Referendum debt service

377,936

Capital Projects Fund

1,725,810 Enterprise Fund

Food service

1,584,609 - Totals

$ 5,460,786 $ 5,460,786

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Interfund transfers for the year ended June 30, 2012 were as follows:

Transfer to: General

Transfers from: Special Revenue Funds

Special projects

$ 23,935

The Transfer above is used to move revenues from the fund that is required to collect them to the fund that is required or allowed to expend them.

4. Short-term Obligations The District issued tax and revenue anticipation promissory notes in advance of property tax collections. The notes are needed because District expenses for the year begin in July whereas tax collections are not received until January. Short-term debt activity for the year ended June 30, 2012 was as follows:

Outstanding 1 Outstanding 1 7/1/11 Issued Retired 6/30/12 Tax and revenue anticipation notes

Issued 7/18/10; due on 7/18/11; interest 2.25% $ 28,300,000 $ - $ 28,300,000 $ -

Issued 7/28/11; due on 6/28/12; interest 1.50% - 19,000,000 19,000,000 -

Issued 10/27/11; due on 2/3/12; interest 1.0% - 15,500,000 15,500,000 -

$ 28,300,000 $ 34,500,000 $ 62,800,000 $ -

Total interest paid for the year on short-term debt totaled $851,289.

34




5. Long-term Obligations The following is a summary of changes in long-term obligations of the District for the year ended June 30, 2012:

Outstanding 1 Outstanding 1 Due Within 1 7/1/11 Issued Retired 6/30/12 One Year Governmental activities: General Obligation Debt

Bonds Notes Total

Premium Loss on advance refunding Capital leases Other post-employment

benefits Pension benefits Compensated absences Governmental activities

Long-term obligations

$ 18,320,000 $ 5,880,000 $ 2,380,000 $ 21,820,000 $ 2,465,000 11,276,497 995,000 6,480,166 5,791,331 676,868 29,596,497 6,875,000 8,860,166 27,611,331 3,141,868

80,561 178,377 18,865 240,073 18,865 (813,679) - (163,797) (649,882) (163,797)

6,696,071 - 5,136,801 1,559,270 795,024

13,890,613 10,962,135 8,271,931 16,580,817 - - 188,257 - 188,257 -

1,314,243 1,269,855 1,314,243 1,269,855 1,269,855

$ 50,764,306 $ 19,473,624 $ 23,438,209 $ 46,799,721 $ 5,061,815

Total interest paid during the year on long-term debt totaled $1,122,819.

General Obligation Debt Detail of the outstanding general obligation debt follows:

Average Issue Issue Interest Dates of Outstanding

Amount Date Rates (%) Maturity 6/30/12 General Obligation Notes $ General Obligation Qualified Zone

Academy Notes General Obligation Bonds General Obligation Bonds General Obligation Bonds General Obligation Qualified

School Construction Promissory Notes

General Obligation Notes General Obligation Notes General Obligation Refunding

Bonds Total General Obligation Debt

2,200,000 02/01/06 4.00% 04/01/13 l 355,000

1,728,000 04/15/08 1.00% 04/14/18 1,057,331 8,420,000 09/03/08 4.35 - 5.45% 04/01/16 5,740,000 5,945,000 09/03/08 4.00 - 4.25% 04/01/19 5,945,000 7,320,000 07/28/09 2.00 - 4.05% 04/01/15 4,255,000

1,794,000 11/09/09 0.00% 09/15/19 1,794,000 1,610,000 04/05/10 2.00- 3.625% 04/01/20 1,590,000

995,000 07/11/11 2.00 - 3.50% 04/01/20 995,000

5,880,000 07/11/11 4.00-5.00% 04/01/31 5,880,000 $ 27,611,331

35




Annual principal and interest maturities of the outstanding general obligation debt of $27,611,331 on June 30, 2012 are detailed below:

Year Ended June 30,

Governmental Activities Principal I Interest I Total

2013 $ 3,141,868 $ 1,063,943 $ 4,205,811 2014 3,343,586 948,809 4,292,395 2015 3,265,322 821,663 4,086,985 2016 3,642,075 686,262 4,328,337 2017 2,474,846 525,571 3,000,417

2018-2022 7,033,634 1,575,407 8,609,041 2023-2027 2,380,000 895,900 3,275,900 2028-2031 2,330,000 270,900 2,600,900

$ 27,611,331 $ 6,788,455 $ 34,399,786

Legal Margin for New Debt The District’s legal margin for creation of additional general obligation debt on June 30, 2012 was $885,517,134 as follows:

Equalized valuation of the District Statutory limitation percentage General obligation debt limitation, per Section 67.03 of the

Wisconsin Statutes Total outstanding general obligation debt Less: Amounts available for financing general obligation debt

Debt service fund Net outstanding general obligation debt applicable to debt limitation Legal Margin for New Debt

$ 27,611,331

395,900

$9,127,325,650 (x) 10%

912,732,565

27,215,431 $ 885,517,134

Capital Leases The cost of equipment acquired under capital leases as of June 30, 2012 was approximately $6,540,622.

The following is a schedule by years of future minimum lease payments due under capital leases together with the present value of the net minimum lease payments as of June 30, 2012:

Governmental Year Ending June 30, Activities 2013 $ 795.024 2014 768,450 Total Minimum Lease Payments 1,563,474 Less: Amount representing interest 4,204 Present Value of Future Minimum Lease Payments $ 1,559,270

36




Advance Refunding During 2012, the District advance refunded two capital leases from 2011. The District purchased U.S. Government that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of the refunded leases. As a result, the leases are considered to be defeased and the liability has been removed from the financial statements. This advance refunding was undertaken to reduce total debt service payments over the next two years by $2,914,522 and to obtain an economic gain (difference between the present value of the debt service payments of the refunded and refunding bonds) of $3,717.

At June 30, 2012, $2,859,080 of outstanding leases are considered defeased.

NOTE D - OTHER INFORMATION

Retirement Commitments All eligible District employees participate in the Wisconsin Retirement System (WRS), a cost-sharing, multiple-employer, defined benefit, public employee retirement system. All employees, initially employed by a participating WRS employer prior to July 1, 2011, expected to work at least 600 hours a year (440 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee’s date of hire are eligible to participate in the WRS. All employees, initially employed by a participating WRS employer on or after July 1, 2011, and expected to work at least 1200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee’s date of hire are eligible to participate in the WRS. Employees hired to work nine or ten months per year, (e.g. teachers contracts), but expected to return year after year are considered to have met the one-year requirement.

Prior to June 29, 2011, covered employees in the General/Teacher/Educational Support Personnel category were required by statute to contribute 6.5% of their salary (3.9% for Executives and Elected Officials, 5.8% for Protective Occupations with Social Security, and 4.8% for Protective Occupations without Social Security) to the plan. Employers could make these contributions to the plan on behalf of employees. Employers were required to contribute an actuarially determined amount necessary to fund the remaining projected cost of future benefits.

Effective the first day of the first pay period on or after June 29, 2011 the employee required contribution was changed to one-half of the actuarially determined contribution rate for General category employees, including Teachers, and Executives and Elected Officials. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. Contribution rates are as follows:

2011 2012

General (including Teachers) Executives & Elected Officials Protective with Social Security Protective without Social Security

Employee Employer 5.8% 5.8% 6.65% 6.65% 5.8% 8.9% 5.8% 11.2%

Employee Employer 5.9% 5.9% 7.05% 7.05% 5.9% 9.0% 5.9% 11.3%

37



NOTE D - OTHER INFORMATION (Continued)

The payroll for District employees covered by the WRS for the year ended June 30, 2012 was $132,424,669; the employer’s total payroll was $134,286,820. The total required contribution for the year ended June 30, 2012 was $15,493,606, which consisted of $7,746,803 or 5.8% of covered payroll from the employer for July 1, 2011 through December 31, 2011 and 5.9% of covered payroll from the employer for January 1, 2012 through June 30, 2012, and $7,746,803, or 5.8% of covered payroll from employees for July 1, 2011 through December 31, 2011 and 5.9% of covered payroll from the employees for January 1, 2012 through June 30, 2012. Total contributions for the years ended June 30, 2011 and 2010 were $14,639,214 and $13,389,544, respectively, equal to the required contributions for each year.

Employees who retire at or after age 65 (62 for elected officials and 54 for protective occupation employees with less than 25 years of service, 53 for protective occupation employees with more than 25 years of service) are entitled to receive a retirement benefit. Employees may retire at age 55 (50 for protective occupation employees) and receive actuarially reduced benefits. The factors influencing the benefit are: (1) final average earnings, (2) years of creditable service, and (3) a formula factor. A final average earnings is the average of the employee’s three highest year’s earnings. Employees terminating covered employment and submitting application before becoming eligible for a retirement benefit may withdraw their contributions and, by doing so, forfeit all rights to any subsequent benefit. For employees beginning participation on or after January 1, 1990, and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998 and prior to July 1, 2011 are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011 must have five years of creditable service to be vested.

The WRS also provides death and disability benefits for employees. Eligibility and the amount of all benefits are determined under Chapter 40 of Wisconsin Statutes.

The WRS issues an annual financial report that may be obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707-7931.

2. Risk Management The District is exposed to various risks of loss related to torts; thefts, damage or destruction of assets; errors or omissions; employee health and accident claims; or acts of God. The District has chosen to retain a portion of the risks through a self-insurance program and has also purchased insurance to transfer other risks to outside parties. A description of the District’s risk management program is presented below:

On July 1, 1992, the District established a self-funded health and dental benefit plan for its employees. The Plan administrator is responsible for the approval, processing and payment of claims, after which they bill the District for reimbursement. The District is also responsible for a monthly administrative fee. The Plan reports on a calendar year. Accounting and budgeting requirements for the Plan are established by the Wisconsin Department of Public Instruction. The Plan is accounted for in the general fund of the District.

As part of the health care coverage of the Plan, the District purchases stop-loss coverage which pays claims in excess of $200,000 and up to $1,000,000 per individual. The District has no stop-loss coverage for dental care coverage of the Plan.

’I;]




At June 30, 2012, the District has reported a liability of $2,542,900 which represents reported and unreported claims which were incurred on or before June 30, 2012, but were not paid by the District as of that date. The amounts not reported to the District were estimated using data provided by the plan administrators. Changes in the program’s claim liability amount for the year ended June 30, 2012 with comparative totals for the prior year follows:

Current Year Claims and

Liability Changes in Claim Liability July 1 Estimates Payments June 30

2011 $ 3,534,900 $ 51,673,311 $ 50,553,311 $ 4,654,900 2012 4,654,900 25,318,156 27,430,156 2,542,900

3. Other Postemployment Benefits The District has established the Racine Unified School District Trust Fund for Post-Employment Benefits (the "Plan") which provides eligible employees and former employees of the District (the "Participants") health and dental benefits. The Plan is reported as a fiduciary fund of the District and the significant accounting policies of the Plan are consistent with the District’s significant accounting policies discussed in Note A. The Plan financial statements are prepared on the accrual basis of accounting.

a. Plan Descriptions and Contribution Information

Membership of the Plan at July 1, 2010, the date of the latest actuarial valuation:

Teachers Administrators Building service Clerical Educational assistants Total

Retirees Active Receiving I Employees Benefits Total

1,556 402 1,958 109 38 147 183 30 213 146 8 154 358 7 365

2,352 485 2,837



NOTE 0 - OTHER INFORMATION (Continued)

Plan Description. The Plan is a single-employer defined benefit postemployment health and dental plan that covers retired employees of the District. Eligible retired employees have access to group medical coverage through the District’s self-insured group plans while eligible retired administrators are also eligible for District paid dental coverage. District paid medical and dental benefits last until the retiree reaches age 65 while coverage for the spouse lasts until the retiree or spouse reaches age 65, whichever comes first. All employees of the District are eligible for the Plan if they meet the following age and service requirements:

Teachers Age 55 and 15 years of service Administrators Age 55 and 20 years of service; Age 62 and 5 years of service Building service Age 55 and 25 years of service; Age 58 and 25 years of service Clerical Age 58 and 30 years of service; Age 60 and 25 years of service or Age 62 Educational assistants Age 58 and 30 years of service; Age 60 and 25 years of service or Age 62

and 20 years of service

Contributions. Certain retired plan members and beneficiaries currently receiving benefits are required to contribute specified amounts monthly toward the cost of health insurance premiums based on the employee group and their retirement date.

b. Annual OPEB Cost and Net OPEB Obligation

The District’s annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), and the amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the District’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation.

Amortization Annual Normal Interest of Required Cost Cost AAL Contribution

Teachers Administrators Building service Clerical

$ 4,391,013 $ 451,426 $ 4,637,517 $ 9,479,956 258,012 31,428 370,557 659,997 135,688 23,164 327,592 486,444 47,096 6,154 75,980 129,230

Educational assistants 96,627 9,834 100,047 206,508 Total $ 4,928,436 $ 522,006 $ 5,511,693 $10,962,135

Interest on net OPEB 58,792 Adjustment to annual required contribution (76,493) Annual OPEB cost (expense) 10,944,434 Contributions made

Employer 7,981,678 Plan members 272,552

Change in net OPEB obligation 2,690,204 OPEB obligation - beginning of year 13,890,613 OPEB obligation - end of year $ 16,580,817

40




The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with a long-term perspective of the calculations. Additional information as of the latest actuarial valuation follows:

Valuation date Actuarial cost method Amortization method Remaining amortization period Actuarial assumptions:

Investment rate of return Healthcare cost trend rate

July 1, 2010 Projected Unit Credit Level Dollar on a closed basis 26 years

5.00% -12.5% initial 5.5% ultimate

Trend Information - The District’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation is as follows:

Annual

Fiscal Annual Required Annual Percentage Net

Year OPEB Contribution OPEB Cost of ARC OPEB

Ended Cost (ARC) Contributed Contributed Obligation

6/30/2010 $ 11,772,854 $ 11,772,854 $ 9,140,987 77.64% $ 12,714,775

6/30/2011 10,759,367 10,962,135 9,583,529 87.42% 13,890,613

6/30/2012 10,944,434 10,962,135 7,981,678 7281% 16,580,817

c. Funded Status and Funding Progress

The funded status of the plan as of the most recent actuarial valuation date is as follows:

Actuarial UAAL Accrued as a

Actuarial Liability Unfunded Percentage Actuarial Value (AAL)- AAL Funded Covered of Covered Valuation of Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b � a) (a/b) (c) ([b�a]/c)

7/1/2010 $ 3,012,643 $ 87,755,940 $ 84,743,297 3.4% $139,479,307 60.76%

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Actuarially determined amounts are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future.

41




4. Pension Plan

a. Plan Description

The plan, a single-employer pension plan, is a defined benefit pension plan established to provide benefits after early retirement. The plan is administered by the District.

Administrators who retire from the District, after attaining age 55 and completing twenty years of service with the District, are eligible to receive a retirement benefit equal to the difference between their WRS pension, unreduced for early retirement, and their WRS pension, reduced for early retirement. This benefit is paid in the form of ten year certain and life annuity, for the life of the employee. Clerical employees who retire from the District, after attaining age 62 are eligible to receive a retirement benefit equal to the equivalent of the unemployment compensation rate in effect on the date of retirement for 26 weeks. The plan does not issue separate financial statements.

b. Funding Policy

The entire cost of these benefits is paid by the District. Benefits are currently funded on a pay-as-you-go basis and no assets exist to prefund retiree benefits.

c. Annual Pension Cost and Net Pension Obligation

The District’s annual pension costs for the year ended June 30, 2012 and related actuarial assumptions used for the current year are as follows:

Annual required contribution $ 279,293 Interest on net pension obligation 14,977 Adjustment to annual required (13,639) Annual pension cost 280,631 Contributions made 288,435 Change in net pension obligation (7,804) Net pension obligation beginning of year 196,061 Net pension obligation end of year $ 188,257

The annual required contribution for the current year was determined as part of the July 1, 2010 actuarial valuation using the projected unit credit cost method. The actuarial assumptions included (a) 5.0% investment rate of return (net of administrative expenses) and (b) projected salary increases 3% per year. The investment rate of return has an inflation component of 2.5% per year. It was assumed that employees would not have any other service within the WRS prior to hire by the District. The unfunded actuarial accrued liability is being amortized, as a level dollar amount, on a closed basis. The remaining amortization period at June 30, 2012 was 26 years.

42




Trend Information

Fiscal Annual Percentage Net Year Pension of APC Pension

Ending Cost (APC) Contributed Obligation

6/30/10 $ 237,735 67.8% $ 29,007 6/30/11 371,967 55.1% 196,061 6/30/12 280,631 102.8% 188,257

d. Funding Status and Funding Progress

As of July 1, 2010, the most recent actuarial valuation date, the plan was unfunded. The actuarial accrued liability for benefits was $3,001,764. With no plan assets, the unfunded actuarial accrued liability was also $3,001,764.

5. Contingencies a. The District participates in a number of federal and state assisted grant programs. These programs

are subject to program compliance audits by the grantors or their representatives. Accordingly, the District’s compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the District expects such amounts, if any, to be immaterial.

b. From time to time, the District is party to other various pending claims and legal proceedings. Although the outcome of such matters cannot be forecast with certainty, it is the opinion of management and legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the District’s financial position or results of operations.

6. Limitation on School District Revenues Wisconsin Statutes limit the amount of revenues a school district may derive from general school aids and property taxes unless a higher amount is approved by a referendum.

This limitation does not apply to revenue needed for payment of any general obligation debt service (including refinanced debt) authorized by either of the following:

a. A resolution of the school board or by referendum prior to August 12, 1993.

b. A referendum on or after August 12, 1993.

7. Subsequent Event On November 1, 2012, the District issued $10,000,000 of general obligation note anticipation notes to finance improvements and major maintenance repairs to the District’s schools. The interest rate is 2.75% and the maturity date is November 1, 2013.

43

REQUIRED SUPPLEMENTAL INFORMATION


Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual

General Fund - Budgetary Basis For the Year Ended June 30, 2012

Variance with Final Budget -

Budgeted Amounts Actual Amounts

Positive (Negative) Original I Final

$ 76,642,568 $ 76,642,568 $ 76,642,568 $ - 647,837 700,568 679,091 (21,477)

- 104,640 80,686 (23,954) 5,000 5,000 4,996 (4)

131,231,512 131,364,365 131,365,296 931 16,775,075 16,575,016 12,198,835 (4,376,181)

- 772,290 1,365,791 593,501 225,301,992 226,164,447 222,337,263 (3,827,184)

96,786,121 88,979,779 86,159,320 2,820,459 4,745,215 4,536,451 4,293,241 243,210 6,280,589 6,168,612 6,414,550 (245,938)

107,811,925 99,684,842 96,867,111 2,817,731

8,544,888 8,225,114 8,056,908 168,206 7,717,223 9,374,778 8,783,949 590,829 2,078,852 2,072,604 2,151,957 (79,353)

11,115,735 10,316,546 10,343,165 (26,619) 2,756,819 2,382,242 2,323,938 58,304

26,368,844 25,293,565 24,718,148 575,417 5,193,164 5,188,473 4,799,494 388,979 6,847,582 6,308,656 5,681,388 627,268 1,234,961 890,139 1,193,724 (303,585)

600,644 619,346 651,850 (32,504) 72,458,712 70,671,463 68,704,521 1,966,942

3,674,262 6,621,178 6,652,917 (31,739)

5,649,479 7,128,718 7,154,552 (25,834) 86,645 442,645 54,656 387,989

5,736,124 7,571,363 7,209,208 362,155 189,681,023 184,548,846 179,433,757 5,115,089

35,620,969 41,615,601 42,903,506 1,287,905

239,083 178,989 61,535 (117,454)

(32,958,865) (31,434,085) (30,053,661) 1,380,424

(32,719,782) (31,255,096) (29,992,126) 1,262,970

2,901,187 10,360,505 12,911,380 2,550,875

20,207,059 20,207,059 20,207,059 -

Revenues Property taxes Other local sources Interdistrict sources Intermediate sources State sources Federal sources Other sources Total Revenues


Regular instruction Vocational instruction Other instruction Total Instruction

Support Services Pupil services Instructional staff services General administration services School administration services Business services Operation and maintenance of plant Pupil transportation services Central services Insurance Other support services Total Support Services

Debt service Non-program

General tuition payments Indirect costs Total Non-program

Total Expenditures


Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses)

Net Change in Fund Balance

Fund Balance - July 1

Fund Balance - June 30 $ 23,108,246 $ 30,567,564 $ 33,118,439 $ 2,550.875

The notes to the required supplemental information are an integral part of this schedule.

44


Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual

Special Education Special Revenue Fund - Budgetary Basis For the Year Ended June 30, 2012

Variance with Final Budget -

Budgeted Amounts Actual Amounts

Positive (Negative) Original I Final

$ 12,343,530 $ 12,747,896 $ 12,976,558 $ 228,662 8,449,406 5,733,426 6,402,435 669,009

20,792,936 18,481,322 19,378,993 897,671

- - 912 (912)

60,000 41,000 37,518 3,482

39,542,288 37,566,022 36,482,621 1,083,401

39,602,288 37,607,022 36,521,051 1,085,971

5,300,715 5,209,917 5,227,485 (17,568) 4,219,831 2,229,923 2,546,932 (317,009)

- 25,000 22,147 2,853 82,000 139,746 130,508 9,238 46,200 25,980 23,445 2,535

3,787,063 3,678,701 3,738,522 (59,821) 20,600 83,600 212,603 (129,003)

217,382 207,997 185,948 22,049 - - 86,266 (86,266) - 379,176 464,683 (85,507)

13,673,791 11,980,040 12,638,539 (658,499)

257,739 132,034 235,464 (103,430)

53,533,818 49,719,096 49,395,054 324,042

(32,740,882) (31,237,774) (30,016,061) 1,221,713

32,958,865 31,434,085 30,053,661 (1,380,424)

(217,983) (196,311) (37,600) 158,711

32,740,882 31,237,774 30,016,061 (1,221,713)

Revenues State sources Federal sources Total Revenues


Regular instruction Vocational instruction Special education instruction Total Instruction

Support Services Pupil services Instructional staff services General administration services Business services Operation and maintenance of plant Pupil transportation services Central services Insurance Other support services Principal and interest Total Support Services

Non-program Special education tuition payments

Total Expenditures

Excess of Revenues Under Expenditures

Other Financing Sources Transfers in Transfers out Total Other Financing Sources (Uses)

Net Change in Fund Balance

Fund Balance - July 1

Fund Balance - June 30


45


Schedule of Funding Progress For the Year Ended June 30, 2012

Other Post-Employment Benefit Plan (4)

(2) Unfunded UAAL Actuarial Actuarial as a

Actuarial (1) Accrued (3) Accrued Percentage Valuation Actuarial Liability Funded Liability (5) of Covered

Date Value of (AAL) Entry Ratio (UAAL) Covered Payroll July 1 Assets Age Normal (1)1(2) (2) - (1) Payroll (4)/(5)

2006 $ - $ 105,676,225 0.00% $ 105,676,225 $ 106,000,000 99.69% 2008 1,961,309 97,647,304 2.01% 95,685,995 101,073,000 94.67% 2010 3,012,643 87,755,940 3.43% 84,743,297 139,479,307 60.76%

Pension Plan (4)

(2) Unfunded UAAL Actuarial Actuarial as a

Actuarial (1) Accrued (3) Accrued Percentage Valuation Actuarial Liability Funded Liability (5) of Covered

Date Value of (AAL) Entry Ratio (UAAL) Covered Payroll July 1 Assets Age Normal (1)/(2) (2)-(1) Payroll (4)/(5)

2006 $ - $ 2,328,523 0.00% $ 2,328,523

N/A N/A 2008 - 2,603,083 0.00% 2,603,083

N/A N/A

2010 - 3,001,764 0.00% 3,001,764

N/A N/A


46


Schedule of Employer Contributions For the Year Ended June 30, 2012

Other Post-Employment Benefit Plan

Year Ended June 30, Employer

Contributions Annual Required

Contribution (ARC) Percentage Contributed

2010 $ 9,140,987 $ 11,772,854 77.64% 2011 9,583,529 10,962,135 87.42% 2012 7,981,678 10,962,135 72.81%

Pension Plan

Year Ended June 30, Employer

FContributions Annual Required

Contribution (ARC) Percentage Contributed

2010 $ 161,177 $ 237,735 67.80% 2011 204,912 279,293 73.37% 2012 288,435 279,293 103.27%


47


Notes to Required Supplemental Information For the Year Ended June 30, 2012

NOTE A - GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 45

The District implemented GASB Statement No. 45, "Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions" for the fiscal year ended June 30, 2009.

NOTE B - CHANGE IN ACTUARIAL ASSUMPTIONS

The District changed the investment rate of return from 5.5% in the July 1, 2008 actuarial valuation to 5.0% in the July 1, 2010 actuarial valuation.

NOTE C - BUDGETARY INFORMATION

Budgetary information is derived from the annual operating budget and is presented using the same basis of accounting for each fund as described in Note B to the financial statements; however, the District adopts a budget for the special education special revenue fund which is reported with the general fund in accordance with generally accepted accounting principles. An explanation of the differences between Revenues, Expenditures, and Other Financing Sources (Uses) for budgetary funds on budgetary fund basis and a GAAP general fund basis is summarized below:

Special General Education

Fund Fund Revenues

Actual amounts (budgetary basis) $ 222,337,263 $ 19,378,993 Reclassification of special education 19,378,993 (19,378,993) Total Revenues 241,716,256 -

Expenditures Actual amounts (budgetary basis) 179,433,757 49,395,054 Reclassification of special education 49,395,054 (49,395,054) Total Expenditures 228,828,811 -

Excess of Revenues Over (Under) Expenditures Actual amounts (budgetary basis) 42,903,506 (30,016,061) Reclassification of special education (30,016,061) 30,016,061 Excess of Revenues Over (Under) Expenditures 12,887,445 -

Other Financing Sources (Uses) Actual amounts (budgetary basis) (29,992,126) 30,016,061 Reclassification of special education 30,016,061 (30,016,061) Total Other Financing Sources (Uses) 23,935 -

Net Change in Fund Balance Actual amounts (budgetary basis) 12,911,380 -

Fund Balance - January 1 Actual amounts (budgetary basis) 20,207,059 -

Fund Balance - December 31 Actual amounts (budgetary basis) $ 33,118,439 $ -

SUPPLEMENTAL INFORMATION

LIABILITIES AND FUND BALANCES Liabilities

Due to other funds


Combining Balance Sheet Nonmajor Governmental Funds

June 30, 2012

Special Revenue Funds

Trust Special Projects

Community I Service

124,313 - 1,094,182 - 305,140

$ 124,313 $ 305,140 $ 1,094,182

$ - $ 272,535 $ -

ASSETS Receivables

Accounts Due from other funds Due from other governments Prepaid items

TOTAL ASSETS

Fund Balances Fund Balances

Nonspendable Prepaid items

Restricted Private gifts and donations Grant expenditures Construction of capital assets Debt service Community service programs

Total Fund Balances

TOTAL LIABILITIES AND FUND BALANCES

124,313 - - - 32,605 -

- - 1,094,182

124,313 32,605 1,094,182

$ 124,313 $ 305,140 $ 1,094,182

49

Debt Service Funds Capital Projects

Total Nonmajor Governmental

Funds Non-Referendum

Debt Service Referendum Debt Service

$ 70,162 $ 70,162

281,401 377,936 1,725,810 3,603,642 - - - 305,140 - - 15,000 15,000

$ 281,401 $ 377,936 $ 1,810,972 $ 3,993,944

272,535

15,000 15,000

- - - 124,313 - - - 32,605 - - 1,795,972 1,795,972

281,401 377,936 - 659,337 - - - 1,094,182

281,401 377,936 1,810,972 3,721,409

$ 281,401 $ 377,936 $ 1,810,972 $ 3,993,944

IIU of


Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds

For the Year Ended June 30, 2012

Special Revenue Funds

Trust Special Projects

Community I Service Revenues

Property taxes $ - $ - $ 850,000 Other local sources 122,000 - 156,372 Federal sources - 640,540 - Total Revenues 122,000 640,540 1,006,372


Regular instruction Other instruction Total Instruction

Support Services Pupil services Instructional staff services General administration services School administration services Operation and maintenance of plant Pupil transportation services Central services Other support services Total Support Services

Debt Service Principal Interest and fiscal charges Total Debt Service

Community Services Total Expenditures


Other Financing Sources (Uses) Long-term debt issued Premium on long term debt issued Sale of capital assets Transfers out Total Other Financing Sources (Uses)

Net Change in Fund Balances

Fund Balances - July 1

Fund Balances - June 30

23,121 364,802 - - 89,694 -

23,121 454,496 -

- 1,006 -

40,711 145,739 -

48,000 - 7,973 - 326 (6)

- 8,655 -

- 6,723 -

- - 1,157

88,711 162,449 9,124

- - 57,569

111,832 616,945 66,693

10,168 23,595 939,679

- (23,935) - - (23,935) -

10,168 (340) 939,679

114,145 32,945 154,503

$ 124,313 $ 32,605 $ 1,094,182

51

Debt Service Funds Capital Projects

Total Nonmajor Governmental

Funds Non-Referendum

Debt Service I Referendum

Debt Service

$ 872,267 $ 3,126,308 $ - $ 4,848,575

1,078 - 48,755 328,205 - - - 640,540

873,345 3,126,308 48,755 5,817,320

- - - 387,923 - - - 89,694 - - -

477.617

- - - 1,006 - - - 186,450 - - - 55,973 - - - 320 - - 2,774,950 2,774,950 - - - 8,655 - - - 6,723 - - - 1,157 - - 2,774,950 3,035,234

6,480,166 2,380,000 - 8,860,166 402,626 788,982 - 1,191,608

6,882,792 3,168,982 - 10,051,774 - -

- 57,569 6,882,792 3,168,982 2,774,950 13,622,194

(6,009,447) (42,674) (2,726,195) (7,804,874)

5,880,000 - 995,000 6,875,000

178,377 - - 178,377 - - 900,000 900,000 - - - (23,935)

6,058,377 - 1,895,000 7,929,442

48,930 (42,674) (831,195) 124,568

232,471 420,610 2,642,167 3,596,841

$ 281,401 $ 377,936 $ 1,810,972 $ 3,721,409

52

ASSETS Cash and investments

RACINE UNIFIED SCHOOL DISTRICT Racine, Wisconsin Pupil Activity Funds

Schedule of Changes in Assets and Liabilities For the Year Ended June 30, 2012

Pupil Activity Funds Balance 07/01/11 1 Additions Deletions

Balance 06/30/12

$ 1,033,126 $ 3,294,630 $ 3,227,028 $ 1,100,728

LIABILITIES Due to student organizations

Senior high schools Middle schools Elementary schools Early Childhood schools Lighted Schoolhouse P-COC Mack Center REAL School

TOTAL LIABILITIES

$ 585,612 $ 1,818,795 $ 1,764,422 $ 639,985 194,248 693,082 699,572 187,758 227,586 640,941 633,271 235,256

8,103 22,812 21,567 9,348 1,004 41,478 33,209 9,273 2,790 11,777 12,388 2,179 2,266 1,576 1,150 2,692

11,517 64,169 61,449 14,237

$ 1,033,126 $ 3,294,630 $ 3,227,028 $ 1,100,728

53

ADDITIONAL INDEPENDENT AUDITORS’ REPORT FOR BASIC FINANCIAL STATEMENTS

rye Schenck CPAs AND SO MUCH MORE.

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Racine Unified School District as of and for the year ended June 30, 2012, which collectively comprise the Racine Unified School District’s basic financial statements and have issued our report thereon dated November 2, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting Management of Racine Unified School District is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the District’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion of the effectiveness of the District’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified a certain deficiency in internal control over financial reporting, described in the accompanying schedule of findings and questioned costs as item 2012-01 that we consider to be a significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

54


A GN 800-236-2246 schencksc.com INIERNATIOMAL

Scheneksc

We noted certain matters that we reported to management of the Racine Unified School District, Wisconsin in a separate letter dated November 2, 2012.

The District’s response to the finding identified in our audit is described in the accompanying schedule of prior year audit findings and corrective action plan. We did not audit the District’s response and, accordingly, we express no opinion on it.

This report is intended solely for the information and use of the Board of Education, management and federal and state awarding agencies, and is not intended to be and should not be used by anyone other than these specified parties.

-101640,4k1--5C-


55

FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

cot Schenck CPAs AND SO MUCH MORE.

REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR FEDERAL AND STATE PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND THE STATE SINGLE AUDIT GUIDELINES


Compliance We have audited Racine Unified School District, Wisconsin’s ("the District") compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and the State Single Audit Guidelines issued by the Wisconsin Department of Administration that could have a direct and material effect on each of its major federal and state programs for the year ended June 30, 2012. The District’s major federal and state programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal and state programs is the responsibility of the District’s management. Our responsibility is to express an opinion on the District’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit Guidelines issued by the Wisconsin Department of Administration. Those standards, OMB Circular A-133 and the State Single Audit Guidelines require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal or state program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the District’s compliance with those requirements.

In our opinion, Racine Unified School District complied, in all material respects, with the requirements referred to above that could have a direct and material effect on each of its major federal and state programs for the year ended June 30, 2012. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and the State Single Audit Guidelines and which are described in the accompanying schedule of findings and questioned costs as items 2012-02, 2012-03 amd 2012-04.

Internal Control Over Compliance Management of the District is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal and state programs. In planning and performing our audit, we considered the District’s internal control over compliance with the requirements that could have a direct and material effect on a major federal and state program to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-i 33 and the State Single Audit Guidelines, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance.

56


A GN 800-2362246 INTERNATIONAL

Schenck so

Our consideration of the internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, therefore, there can be no assurance that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal or state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal or state program will not be prevented, or detected and corrected on a timely basis. We did not identify an deficiencies in internal control over compliance that we consider to be material weaknesses.

A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal or state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance as described in the accompanying schedule of findings and questioned costs as items 2012-02, 2012-03, and 2012-04 to be significant deficiencies.

The District’s responses to the findings identified in our audit are described in the accompanying schedule of prior year audit findings and corrective action plan. We did not audit the District’s responses and, accordingly, we express no opinion on them.

This report is intended solely for the information and use of, management, the Board of Education, others within the District, and federal and state awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

_4’d,444 -.V.-


57


Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2012

Federal Catalog

Federal Grantor/Program Name/Grant Period Pass-Through Agency Number

U.S. Department of Agriculture Nutrition Enhancement/Breakfast Public Aid

July l,2011 -June 30, 2012 Child Nutrition Cluster

School Breakfast Program July 1, 2010-June 30, 2011 July l,2011 -June 30, 2012

National School Lunch Program July 1, 2010-June 30, 2011 July l,2011 -June 30, 2012 Donated Commodities

Total National School Lunch Program Special Milk Program for Children

July 1, 2010-June 30, 2011 July l,2011 -June 30, 2012

Summer Food Service Program for Children July l,2011 -June 30, 2012

Total Child Nutrition Cluster

Total U.S. Department of Agriculture

U.S. Department of Education Title I, Part A Cluster

Title I Grants to Local Educational Agencies Basic Grant


Neglected and Delinquent Youth July 1,2010-June 30, 2011 July l,2011 -June 30, 2012

State Program Improvement July 1, 2010-June 30, 2011

Detention Center July 1, 2010-June 30, 2011 July l,2011 -June 30, 2012

Total Title I Grants to Local Educational Agencies

ARRA - Title I Grants to Local Educational Agencies Basic Grant

July 1, 2009 - September 30, 2011 Supplemental Grant

July 1, 2009 - September 30, 2011 Delinquent

July 1, 2009 - September 30, 2011 Total ARRA - Title I Grants to Local Educational Agencies Total Title I, Part A Cluster

(Continued)

Wisconsin Department of Public Instruction

Wisconsin Department of Public Instruction Wisconsin Department of Public Instruction

Wisconsin Department of Public Instruction Wisconsin Department of Public Instruction Wisconsin Department of Public Instruction



10.500

10.553

10.555

10.556

10.559

84.010





84.389




Accrued Accrued Receivable Receivable (Deferred (Deferred Revenue) Cash Revenue) Total Total

7/1/11 Received 6/30/12 Revenues Expenditures

$ - $ 3,000 $ - $ 3,000 $ 3,000

(46,788) 46,788 - - -

- 1,110,269 39,443 1,149,712 1,149,712

(179,005) 179,005 - - -

- 4,388,327 139,237 4,527,564 4,527,564 - 469,057 - 469,057 469,057

(179,005) 5,036,389 139,237 4,996,621 4,996,621

(185) 185 - - -

- 5,964 96 6,060 6,060

- 162,362 - 162,362 162,362 (225,978) 6,361,957 178,776 6,314,755 6,314,755

(225,978) 6,364,957 178,776 6,317,755 6,317,755

(2,412,684) 2,412,684 - - -

- 2,556,934 4,169,105 6,726,039 6,726,039

(167,912) 167,912 - - -

- 51,473 78,826 130,299 130,299

(133,898) 133,898 - - -

(40,810) 40,810 - - -

- 215 - 215 215 (2,755,304) 5,363,926 4,247,931 6,856,553 6,856,553

(1,383,195) 1,551,864 - 168,669 168,669

(663,786) 827,675 - 163,889 163,889

(65,816) 65,816 - - -

(2,112,797) 2,445,355 - 332,558 332,558 (4.868.101) 7.809.281 4.247.931 7.189,111 7,189,111


Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2012

Federal Catalog


U.S. Department of Education (Continued)

Career and Technical Education - Basic Grants to States

84.048 July 1, 2010 - June 30, 2011 Wisconsin Department of Public Instruction July 1, 2011 - June 30, 2012 Wisconsin Department of Public Instruction

Special Education Cluster (IDEA) Special Education - Grants to States

IDEA Flow Thru July 1, 2010-June 30, 2011 July l,2011 -June 30, 2012

IDEA High Cost Special Education Aid July 1, 2011 - June 30, 2012

IDEA Discretionary Grant - Disportionality July l,2011 - June 30, 2012

Total Special Education - Grants to States




84.027

84.173

84.391

84.392

84.184

84.186

84.196

84.215k

84.287

84.287

Special Education - Preschool Grants July 1,2010-June 30, 2011


July 1, 2011 -June 30, 2012

Wisconsin Department of Public Instruction ARRA - Special Education - Grants to States

February 2, 2009 - September 30, 2011

Wisconsin Department of Public Instruction ARRA - Special Education - Preschool Grants

February 2, 2009 - September 30, 2011

Wisconsin Department of Public Instruction Total Special Education Cluster (IDEA)

Safe and Drug-Free Schools and Communities - National Programs July 1, 2011 - June 30, 2012 Wisconsin Department of Public Instruction

Safe and Drug-Free Schools and Communities - State Grants July 1, 2010 - June 30, 2011 Wisconsin Department of Public Instruction

Education for Homeless Children Education for Homeless Children and Youth

July 1, 2010 - June 30, 2011

Wisconsin Department of Public Instruction July l,2011 -June 30, 2012


Total Education for Homeless Children

Fund for the Improvement of Education July 1,2010-June 30, 2011

City of Racine

July l,2011 -June 30, 2012

City of Racine Twenty-First Century Community Learning Centers

Twenty-First Century Community Learning Centers July 1, 2010-June 30, 2011


July l,2011 - June 3O,2012

Wisconsin Department of Public Instruction Twenty-First Century Community Learning Centers

July 1, 2010-June 30, 2011

Wisconsin Department of Public Instruction July l,2011 -June 30, 2012


(Continued)

Mes



(271,397) 271,397 - - - - 43,435 188,040 231,475 231,475

(2,185,215) 2,185,215 - - -

- 1,182,333 351,252 1,533,585 1,533,585

- 57,079 - 57,079 57,079

- 125,198 302,897 428,095 428,095 (2,185,215) 3,549,825 654,149 2,018,759 2,018,759

(90,885) 90,885 - - -

- 40,440 75,430 115,870 115,870

(780,527) 1,014,538 - 234,011 234,011

(44,174) 51,276 - 7,102 7,102 (3,100,801) 4,746,964 729,579 2,375,742 2,375,742

(24,127) 53,975 177,215 207,063 207,063

(46,284) 46,284 - - -

(41,840) 41,840 - - - - 28,350 33,845 62,195 62,195

(41,840) 70,190 33,845 62,195 62,195

(30,487) 30,487 - - - - 25,660 19,292 44,952 44,952

(100,479) 100,479 - - - - 141,998 78,555 220,553 220,553

(74,039) 74,039 - - - - 28,742 38,611 67,353 67,353

61


Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2012

Federal Catalog


U.S. Department of Education (Continued)

Twenty-First Century Community Learning Centers July 1, 2010 - June 30, 2011 July 1, 2011 -June 30, 2012

Twenty-First Century Community Learning Centers July 1, 2011 - June 30, 2012

Total Twenty-First Century Community Learning Centers

Educational Technology State Grants Cluster Educational Technology State Grants

July 1,2010-June 30, 2011 ARRA - Educational Technology State Grants

February 2, 2009 - September 30, 2011 Total Educational Technology State Grants Cluster

Transition to Teaching Grant Program July l,2011 -June 30, 2012

English Language Acquisition Grants July 1, 2010-June 30, 2011 July 1, 2011 - June 30, 2012

Improving Teacher Quality State Grants July 1, 2010 - June 30, 2011 July 1, 2011 -June 30, 2012

ARRA - Education Jobs Bill July 1, 2010-June 30, 2011 July 1, 2011 -June 30, 2012 Total U.S. Department of Education

U.S. DeDartment of Health and Human Services Medical Assistance - Student Based Services Benefit


Center for Disease Control - Basic Grant July l,2011 -June 30, 2012

Total U.S. Department of Health and Human Services

TOTAL FEDERAL FINANCIAL ASSISTANCE

Reconciliation to Basic Financial Statements Governmental Funds

Federal sources Proprietary Fund

Federal sources Total Federal Awards

84.287 Wisconsin Department of Public Instruction Wisconsin Department of Public Instruction

84.287 Wisconsin Department of Public Instruction

84.318 Mequon-Thiensville School District





84.410 Wisconsin Department of Administration Wisconsin Department of Administration

93.778 Wisconsin Department of Health Services Wisconsin Department of Health Services

93.938 Wisconsin Department of Health Services

See Notes to the Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance.

62



(159,911) 159,911 - - - - 68,626 82,506 151,132 151,132

70,373 86,662 157,035 157,035

(334,429) 644,168 286,334 596,073 596,073

(5,996) 5,996 - - -

- 84,897 - 84,897 84,897

(5,996) 90,893 - 84,897 84,897

- - 26,536 26,536 26,536

(251,580) 251,580 - - -

- 141,998 96,586 238,584 238,584

(694,113) 694,113 - - -

- 460,738 744,584 1,205,322 1,205,322

(133,691) 133,691 - - -

- 2,513,062 15,064 2,528,126 2,528,126 (9,802,846) 18,027,916 6,565,006 14,790,076 14,790,076

(891,567) 891,567 - - - - 2,767,531 1,683,953 4,451,484 4,451,484

- 250 - 250 250

(891,567) 3,659,348 1,683,953 4,451,734 4,451,734

$(10,920,391) $28,052,221 $ 8,427.735 $ 25,559,565 $ 25,559.565

$ 19,241,810

6,317,755 $ 25.559,565

63


Schedule of State Financial Assistance For the Year Ended June 30, 2012

State 1. D.

State Grantor/Program Name/Grant Period Pass-through Agency Number

Wisconsin Department of Public Instruction Cost Reimbursement Programs

Preschool to Grade Five Program 255.305 July 1, 2009 - June 30, 2010 Direct Program

Youth Alcohol and Other Drug Abuse 255.312 July 1, 2010 - June 30, 2011 Direct Program

AODA Mini Grants 255.312 July 1, 2010 - June 30, 2011 Cooperative Educational Services

Agency (CESA) No. 1 Total Cost Reimbursement Programs

Entitlement Programs Special Education and School Age Parents Direct Program 255.101 State Lunch Direct Program 255.102 Common School Fund Library Direct Program 255.103 Bilingual - Bicultural Aid Direct Program 255.106 Pupil Transportation Aid Direct Program 255.107 Charter Schools State Aid Direct Program 255.109 General Equalization Aids 255.201

July 1, 2009 - June 30, 2010 Direct Program July 1, 2010- June 30, 2011 Direct Program

Integration Transfer Direct Program 255.205 High Cost Special Education Aid Direct Program 255.210 State Breakfast Program Direct Program 255.344 Mentoring for Initial Educators Direct Program 255.355 Tuition Payments by State Direct Program 255.401 Student Achievement Guarantee in

Education (SAGE) Program Direct Program 255.504 Aid for High Poverty School District Direct Program 255.926 WI Partnership Childhood Fitness Direct Program 255.938 Total Entitlement Programs

Total Wisconsin Department of Public Instruction

TOTAL STATE FINANCIAL ASSISTANCE

Reconciliation to Basic Financial Statements Governmental Funds

State sources State awards reported with intermediate sources

Proprietary Fund State sources

Revenues not considered state financial assistance Tax-exempt computer aids Disability user charge from the state

Total State Awards

See Notes to the Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance.

64

(Accrued Accrued Receivable) Receivable

Deferred (Deferred Revenue Cash Revenue) Total Total


$ (448,021) $ 448,021 $

(112,201) 112,201 - - -

- 4,996 - 4,996 4,996

(560,222) 565,218 - 4,996 4,996

- 12,730,235 - 12,730,235 12,730,235 - 83,655 - 83,655 83,655 - 846,939 - 846,939 846,939 - 466,326 - 466,326 466,326 - 412,272 - 412,272 412,272 - 1,000,000 - 1,000,000 1,000,000

(2,177,126) 2,177,126 - - - - 115,617,000 2,309,617 117,926,617 117,926,617 - 6,980,29 - 6,980,239 6,980,239 - 206,250 - 206,250 206,250 - 58,674 - 58,674 58,674 - 33,990 - 33,990 33,990 - 293,433 - 293,433 293,433

- 1,491,199 - 1,491,199 1,491,199 - 1,483,804 - 1,483,804 1,483,804 - 1,000 - 1,000 1,000

(2,177,126) 143,882,142 2,309,617 144,014,633 144,014,633

(2,737,348) 144,447,360 2,309,617 144,019,629 144,019,629

$ (2,737,348) $ 144,447,360 $ 2,309,617 $ 144,019,629 $ 144,019,629

$ 144,341,854 - 4,996

142,328

(455,283) (14,266)

$ 144.019,629

65


Notes to the Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance For the Year Ended June 30, 2012

NOTE A - BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards and schedule of state financial assistance include the federal and state grant activity of the Racine Unified School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of OMB Circular A-i 33, Audits of States, Local Governments, and Non-Profit Organizations and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.

NOTE B - SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM

The 2011-2012 eligible costs under the State Special Education Program as reported by the District are $45,387,639.

NOTE C - FOOD DISTRIBUTION

Nonmonetary assistance is reported in the Schedule of Expenditures of Federal Awards at the fair market value of the commodities received and disbursed.

NOTE D - OVERSIGHT AGENCIES

The U.S. Department of Education is the federal oversight agency and the Wisconsin Department of Public Instruction is the state oversight agency for the District.


Schedule of Findings and Questioned Costs For the Year Ended June 30, 2012

Section I - Summary of Auditors’ Results

Basic Financial Statements Type of auditors’ report issued: Unqualified Internal control over financial reporting:

� Material weakness(es) identified? No � Significant deficiency(ies) identified? Yes

Noncompliance material to basic financial statements noted? No

Federal Awards and State Financial Assistance Internal control over major programs:

� Material weakness(es) identified? No � Significant deficiency(ies) identified? Yes

Type of auditors’ report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported

in accordance with Section 510(1) of Circular A-i 33? Yes Any audit findings disclosed that are required to be reported in

accordance with the State Single Audit Guidelines? Yes Identification of major federal and state programs:

I CFDA Number I Name of Federal Programs I Child Nutrition Cluster

10.553 School Breakfast Program 10.555 National School Lunch Program 10.556 Special Milk Program for Children 10.559 Summer Food Service Program for Children

Title I, Part A Cluster 84.010 Title I Grants to Local Educational Agencies 84.389 ARRA - Title I Grants to Local Educational Agencies

Special Education Cluster (IDEA) 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants 84.391 ARRA - Special Education - Grants to States 84.392 ARRA - Special Education - Preschool Grants 84.410 ARRA - Education Jobs Bill 93.778 Medical Assistance - Student Based Services Benefit

State ID Number I Name of State Programs 255.101 Special Education and School Age Parents 255.107 Pupil Transportation Aid 255.109 Charter Schools State Aid

General Aids Cluster (255. 2xx) 255.201 General Equalization Aids 255.205 Integration Transfer 255.210 High Cost Special Education

Audit threshold used to determine between Type A and Type B federal programs: $756,000 Audit threshold used to determine between Type A and Type B state programs: $100,000 Auditee qualified as low-risk auditee No

M.


Schedule of Findings and Questioned Costs (Continued) For the Year Ended June 30, 2012

Section II - Financial Statement Findings

Finding No. Internal Control Deficiencies

2012-01 Year End Financial Reporting

Condition: While the current staff of the District maintains financial records which accurately report revenues and expenditures throughout the year, preparing year-end financial statements, including OPEB disclosures and GASB 34 conversion entries necessary to prepare financial statements, require additional expertise and staff time to develop. The District contracts with Schenck and our knowledge of current accounting principles and regulatory requirements of the Wisconsin Department of Public Instruction to prepare required GASB 34 conversion journal entries and financial reports for the District in an efficient manner.

Criteria: The review of financial statements by staff with expertise in financial reporting is an internal control intended to prevent, detect and correct a potential misstatement in the financial statements or notes.

Cause: The additional costs associated with hiring staff experienced in preparing year end GASB 34 conversion entries and financial statements, including additional training time outweigh the derived benefits.

Effect: The financial statements of the District could be misstated and not detected and corrected in a timely manner by District personnel without adequate review. Under present procedures, the District does review and approve financial reports prepared by Schenck prior to issuance.

Recommendation: We recommend the District continue reviewing the financial reports prepared by Schenck. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to obtain an adequate understanding of the District’s financial report.



Section III - Federal Award and State Financial Assistance Findings and Questioned Costs (Continued)

Finding No. Compliance Findings

2012-02 Allowable Costs/Cost Principles - Time and Effort Reporting

Federal CFDA #84.027 Special Education - Grants to States (IDEA, Part B) Federal CFDA #84.391 Special Education - Grants to States (IDEA, Part B) Federal CFDA #84.173 Special Education - Preschool Grants Federal CFDA #84.192 Special Education - Preschool Grants

Criteria: OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, Attachment A, Paragraph C.1 provides "To be allowable under Federal awards, costs must... be adequately documented. Further, Attachment B, Section 8(h), Support of salaries and wages states:

(3) Where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee.

(4) Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation... Such documentary support will be required where employees work on (a) More than one Federal award, (b) a Federal award and a non-Federal award....

(5) Personnel Activity reports or equivalent documentation must meet the following standards: (a) They must reflect an after-the-fact distribution of the actual activity of each employee, (b) They must account for the total activity of which each employee is compensated, (c) They must be prepared at least monthly and must coincide with one or more pay periods, and (d) they must be signed by the employee...

Condition: The District charged costs to the federal program for one employee that could not adequately be documented by a personal activity reports. This person is no longer employed by the District.

Questioned Costs: The total salary and benefits charged to this grant for this employee is $13,808.

Cause: Procedures to obtain time and effort reporting data required for employees working in federal and state grants with single and multiple cost objectives are not operating effectively.

Effect: The District may be submitting reimbursement for expenditures that are not allowable, or not spent in the period of availability.

Recommendation: We recommend that the District implement an internal control procedure that would ensure all time and effort reporting data is obtained by personnel involved in federal grants for single and multiple cost objectives to support the salaries and benefits charged to each federal grant.





2012-03 Title I Eligibility for Group of Individuals or Area of Service Delivery

Federal CFDA #84.010 Title / Grants to Local Educational Agencies Federal CFDA #84.389 ARRA- Title I Grants to Local Educational Agencies

Criteria: An LEA must determine which school attendance areas are eligible to participate in Title I Part A. school attendance area is generally eligible to participate if the percentage of children from low-income families is at least as high as the percentage of children from low-income families in the LEA as a whole or at least 35 percent. An LEA may also designate and serve a school in an ineligible attendance area if the percentage of children from low-income families enrolled in that school is equal to or greater than the percentage of such children in a participating school attendance area.

Condition: The District was not able to provide the low income targeting data report used to complete the eligibility report required by the State of Wisconsin Department of Public Instruction for this federal grant.

Cause: Due to staff turnover, the District did not retain the low income targeting data report used to complete the eligibility report. The District’s data system, NUTRIKIDS POS, is a live system and cannot reproduce the low income targeting data report used to determine eligibility at that point in time. The District was able to substantiate the amounts reported with a current report from their data system.

Effect: If the cause is not resolved, the District may report incorrect data information to the oversight agency in the future.

Questioned There are no questioned costs. Costs:

Recommendation: We recommend the District establish procedures to retain a copy of the data used to prepare the eligibility report.

70





2012-04 Pupil Transportation Reporting Classifications

State ID #255.107 General Transportation Aid for Public & Non-Public School Pupils

Criteria: The requirements for state transportation aid are detailed in Section 121.58 of the Wisconsin Statutes. These requirements contain provisions that require school districts to count pupils who were actually transported once during the school year with home to school distance using the most direct route. In addition, all students who attend 1-90 should be properly classified.

Condition: The count of pupils receiving transportation from the School District has not been recorded accurately for the year ended June 30, 2012. Using a sample of 25 students, two students were misclassified as over 90 days and three students were misclassified as 1-90 days. In addition, the documentation for students 1-90 days enrolled did not include which mileage category the student was included in for auditor verification. Finally, upon review of the LEA’s annual transportation report in comparison to the complete list of pupils, it was noted that there were 93 duplicated pupils, leading to an over reporting of students receiving transportation services.

Cause: The District does not identify specific procedures for reviewing the documentation received from the system before applying the data to the report. In addition, duplicate entries were not removed prior to report submission due to change in addresses. The system then creates a separate entry for that pupil.

Effect: The District incorrectly reported students transported by category in which pupil transportation aid for the following year is calculated with.

Questioned There are no questioned costs. Costs:

Recommendation: We recommend the preparer of the transportation report review the generated reports for accuracy and make any adjustments to the data. In addition, we recommend that the transportation report be reviewed by an employee not involved in the preparation process before the report is submitted to DPI. The review should be documented by a sign off on the draft report. The draft report, final report and supporting documentation should be retained for a proper audit trail.

71



Section IV - Other Issues

Does the auditor’s report of the notes to the financial statement include disclosure with regard to substantial doubt as to the auditee’s ability to continue as a going concern? Yes X No

Does the audit report show audit issues (i.e., material non-compliance, non-material non-compliance, questioned costs, material weakness, significant deficiency, management letter comment, excess revenue or excess reserve) related to grants/contracts with funding agencies that require audits to be in accordance with the State Single Audit Guidelines:

Department of Public Instruction X Yes No Department of Administration Yes X No Department of Health Services Yes X No

Was a Management Letter or other document conveying audit comments issued as a result of this audit? X Yes No

Name and signature of shareholder David L. Maccoux, CPA

Date of report

November 2, 2012

72


Schedule of Prior Year Audit Findings and Corrective Action Plan For the Year Ended June 30, 2012

Status of Prior Year Audit Finding

All findings noted in the 2011 Schedule of Findings and questioned Costs have been reported to the proper federal and state agencies. Management continues to review the financial reports prepared and be responsible for their accuracy as outline in finding 2011-01.

For finding 2011-03, the District evaluated and changed their control procedures to better account for federal time and effort reporting requirements. Although improved, an error was noted and this will be repeated as finding 2012-03.

For findings 2011-02 and 2011-04, these findings have been resolved.

Corrective Action Plan for Audit Findings

Finding No.

2012-01 Year End Financial Reporting

Management The District has reviewed and will continue to review the financial reports prepared by Response: Schenck and work to communicate questions to mutually understand the financial reports.

2012-02 Allowable Costs/Cost Principles - Time and Effort Reporting

Management The Special education department added staff in early 2012 to assist with Special Response: Education accounting. The staff has implemented a time and effort reporting system that

will obtain documentation to support cost allocations to grants.

2012-03 Title I Eligibility for Group of Individuals or Area of Service Delivery

Management Changes in the organization during the year changed the staff responsible for the report. Response: A procedure has been developed for the future that utilizes readily available reports for

verification.

2012-04 Pupil Transportation Reporting Classifications

Management Changes In data entry for the District’s student data system, Skyward, caused issues with Response: using the data for the District’s transportation data system, Edu log. In prior years, student

data information was downloaded daily into the transportation system. When this is done all duplicate records are eliminated. Last year the district was not able to download the Skyward data as there were many issues with the student data base versus the transportation system. To maintain the accuracy of the transportation student information was key entered. Until daily downloads can resume, a report has been developed and will be used to identify duplicate records in the Edulog transportation software. This report will be run prior to gathering information for the state reports. This will be done until we are unable to do a daily download of the student data base system, which automatically removes all duplicate records. When the state report is complete it will be reviewed and verified with the immediate supervisor of the transportation department. Reports and supporting documentation will be maintained as required by the State.

73


Finance AGENDA ITEM: Partial Release of Note for 2220 Northwestern Avenue


DESCRIPTION: The District agreed to provide short term financing to facilitate the sale of the old ASC. The financing has a five-year amortization. The purchase price for the whole parcel was $500,000. The buyer and current owner of 2220 Northwestern Avenue has worked to divide the parcel into four separate parcels. The buyer/current owner has an opportunity to sell parcel #2 of the four parcels (map attached). In order to accomplish this, the District needs to provide a partial release. The parcel is being sold on a land contract for $75,000. The remaining parcels will still provide collateral and the District has the buyer/ownerʼs personal guarantee for the balance of the note.

FISCAL NOTE: The parcel is being sold on a land contract for $75,000. With a down payment and note payments made to date, the current balance owed is $341,691.97. The remaining parcels will provide collateral for the remaining balance and the District has the buyer/ownerʼs personal guarantee for the balance of the note

RECOMMENDATION: Approve partial release.

ACTION TAKEN:

RACINE UNIFIED SCHOOL DISTRICT BOARD OF EDUCATION

December 17, 2012 Superintendent’s Office

AGENDA ITEM: Exploration of Budget Solutions Committee Proposal PRESENTING: Ann Laing, Superintendent of Schools DESCRIPTION: The Budget Solutions Committee Proposal is the culmination of work that has been

done since June 2012. The Proposal contains goals that were set, a summary of processes used, and data collected. The report contains recommendations for closure of Wind Point Elementary School, adjustments of elementary school boundaries, and continued support for implementation of the IB Programmes at Jefferson Elementary School, McKinley Middle School, and Case High School for the 2013-14 school year. The report also recommends implementation of STEM/STEAM programs at Goodland and Red Apple Elementary Schools and at Mitchell and Starbuck Middle Schools for the 2013-14 school year. The Committee is recommending that the Board of Education and administration strongly consider a referendum to renovate and build an addition to the current Winslow School site, and construct new elementary schools on the current Wind Point and Knapp School sites. The Committee recommends repair of the current Olympia Brown School to allow for the expansion of the REAL School. This is a long-term plan that could be done over the next 5 years.

FISCAL NOTE: 2013-14 ................. $1,465,681

• Includes $450,000 that will come from Science Grant Funds • Includes $7,000 cost for STEM at the middle school level

2014-15 ................. $16,036,764

• REAL School Expansion; including building renovation and expansion of the school program

2014-15 ................. $372,014

• Expansion of IB Programmes Beyond 2014-15 .... Construction of 3 elementary schools

• $13,000,000 per school RECOMMENDATION: The Committee recommends that the Board approve the proposed projects for the

2013-14 school year and approve the recommendations for future projects beyond 2013-14.

ACTION TAKEN:

3109 Mount Pleasant Street, Racine, Wisconsin 53404 (262) 635-5600 www.racine.k12.wi.us

Exploration of Budget Solutions Committee Report

Ann Laing, Ed.D. Superintendent of Schools

December 2012

Exploration of Budget Solutions 2


Table of Contents

Committee Process ......................................................................... Page 3

Committee Members ....................................................................... Page 4

Four-Year-Old Kindergarten ............................................................... Page 5

Elementary Schools ......................................................................... Page 6

Middle Schools ............................................................................... Page 8

High Schools ................................................................................. Page 9

Rubric/Right-Sizing Criteria .............................................................. Page 10

School Boundaries .......................................................................... Page 11

Open Enrollment ........................................................................... Page 13

Innovation Proposals ....................................................................... Page 14

Recommendations ......................................................................... Page 16

Addendum Items ........................................................................... Page 20



Committee Process

Since March 2012, the Exploration of Budget Solutions Committee has examined budget cuts to reduce costs, school building capacities, current enrollments, and enrollment patterns over the past five years. Four-year-old kindergarten's expanding enrollment and placement of classes in schools and at off sites has also been discussed.

The committee listed a number of additions to the budget as well as a number of cuts to balance the budget for the 2013-14 school year. After applying the Tregoe Process, the committee could not agree on additions and cuts that could be applied.

The Committee then established goals to guide the work. The goals are as follows:

• Racine Unified School District (RUSD) will maintain a given percentage of students with IEP's and students by race and SES.

• Using research, RUSD will determine the optimum size of school populations. • RUSD will use mapping software to create maps of current school boundaries (working to balance

boundaries to equalize students, RUSD administrative regulations states that schools will have no more than 10% more or 15% less of the percentage of the district average).

• Reduce the number of split classrooms at the elementary school level through staffing and enrollment numbers to properly staff buildings.

• Review conditions of buildings when determining whether to close or to include in performance contract/facility improvements.

• Use the North Star trajectory as a screen to review proposed redistricting or building changes. Investigate feasibility of savings to close two buildings and replace with a new one (e.g., Beloit, New Berlin, Duluth).

• Rehab or replace buildings to create environments that enhance 21st century learning. • Develop partnerships with existing non-district schools (e.g., 21st Century Prep, Renaissance School, UW-

Parkside, Gateway Technical College) by creating charters for them. • Explore the reassignment HS students to ES/MS buildings (6-12), ES students to HS building (K-5). • Eliminate structural deficits for RUSD. • Maintain/increase district enrollments.

The committee used these goals to guide their work beginning in May. Recommendations are being made based on these goals and the data that was examined.



Committee Members

Member Name Organization Ann Laing, Ed.D. Racine Unified School District

Bethel E. Cager, Ph.D. Racine Unified School District Jeffrey Weiss Racine Unified School District David Hazen Racine Unified School District

Marc Duff Racine Unified School District Bryan Arnold Racine Unified School District

Patrick Starken Racine Unified School District Steven Hejnal Racine Unified School District Daniel Thielen Racine Unified School District

Stacy Tapp Racine Unified School District Jane Flis Racine Unified School District

Jodi Gatzke Racine Unified School District Sharon Campbell Racine Administrators Association

Angela Ress Apmann Racine Administrators Association Douglas Clum Racine Administrators Association Jack Bernfeld Racine Education/Educational Assistants Association Jennifer Levie Racine Education Association Doris Szejna Racine Educational Assistants Association Renee Goff Racine Educational Assistants Association Lily Ramos Racine Educational Assistants Association

Wayne Rasmussen SEIU Local 152 Kelly Highman Wisconsin State Parent Teachers Association Carol Barkow Racine Area Manufacturers and Commerce

Cecilia Anguiano Voces de la Frontera Beverly Hicks NAACP – Racine Branch

Lawrence Terry NAACP – Racine Branch Ray Koukari, Jr. Gateway Technical College

David Maurer United Way of Racine County Diana Valencia LULAC Jose Palacios LULAC

Dr. Fernando Delgadillo LULAC



Four-Year-Old Kindergarten

Four-year-old kindergarten was initiated as a half-day program in the 2006-07 school year. The program was designed to provide classes in elementary schools when space allowed and to locate classes in day cares and preschools to allow for maximum enrollment. The Racine Early Childhood Center was opened as an overflow option for students when classrooms at other locations met the maximum capacity. The current capacity of all locations is 1,291 students. Over the past six years, the number of students enrolled in the program has expanded to the current enrollment of 1,148 students.

At this time, all but five elementary schools have 4K classes. The five schools that do not have classes are Bull Fine Arts, Jefferson, Dr. Jones, North Park, and West Ridge. Of these schools, West Ridge has space but not enough students who live in the attendance area to warrant the program. There are ten day care and preschool programs that house 4K classes. Parents tend to choose placement in these facilities because they can provide care for the children beyond the regular school day.

* Please see Addendum Item A for RUSD 4K numbers 2012-2013.



Elementary Schools

Based on the data in Addendum Item B (Elementary School Capacities), most elementary schools appear to have enrollments that are slightly under the capacity of the buildings. However, some schools have experienced crowding at specific grade levels rather than school wide. The schools that have the largest differences between enrollments and capacity this year are:

Elementary School Optimal Capacity Enrollment Dr. Jones

480 451

Goodland

450 349 (Includes displacements from other schools)

Knapp

546 469

Roosevelt

436 355

Schulte

492 441

Wind Point 294 237 (Includes displacements from other schools)

As of December 11, 2012, Wadewitz and SC Johnson are two RUSD elementary schools that have experienced crowding this year. At Wadewitz, 22 students were displaced to Wind Point (17) and North Park (5). SC Johnson displaced 63 students, sending them to Goodland (33) and Giese (7). Displacements to these schools continue as new students enter into the attendance area.

Fratt displaced 13 students in grades K-2 to Knapp and Goodland to comply with class size maximums required by the SAGE Program. Julian Thomas displaced 25 students in grades K-4 to Wind Point, North Park, and Jerstad-Agerholm.

Wadewitz School has a historic pattern of being enrolled over capacity and having to displace students to other schools.


Exploration of Budget Solutions 2012 When we look at a 5-year trend of enrollments, eleven schools have experienced a reduction in populations from a low of -4.46 percent to high of -19.18 percent. The schools that have had the most significant reduction in student population of nine percent or more are:

Elementary School Population Decrease (%) Olympia Brown

-13.33

Fratt

-13.62

Jerstad-Agerholm

-9.49

Knapp

-10.75

Roosevelt

-9.38

Wind Point

-19.18

*Please see Addendum Item C for RUSD Enrollment Trend by School – 2008-09 to 2012-13.



Middle Schools

Based on the data in Addendum Item D (Middle/High School Capacity Information), three middle schools have enrollments that are close to the optimum capacity of the buildings. Those schools are Jerstad-Agerholm, McKinley, and Starbuck. Two middle schools are under enrolled compared to the optimum capacities of the buildings. They are as follows:

Middle School Optimum Capacity Enrollment Gilmore 1,071

746

Mitchell

828 752*

* It should be noted that Mitchell Middle School uses four classrooms on the elementary side of the building.



High Schools

Based on the data in Addendum Item D (Middle/High School Capacity Information), two of the three comprehensive high schools have enrollments that exceed the building capacity. Horlick High School has the largest enrollment as well as the largest difference between enrollment and building capacity. The capacity and enrollment numbers are as follows:

High School Max. Capacity (School Self Report)

Enrollment

Case

2,374 1,841

Horlick

1,884 2,064

Park 1,700 1,711



Rubric for Right-Sizing/Closure of Schools

A rubric for right-sizing/closure of schools, Addendum E, was developed by the committee to examine the need to close or repurpose any elementary school(s) in the District.

The rubric contains items such as:

• Priority/Focus School Status • Reduce Split Classes • Condition of the Buildings • Cost of Repairs • Numbers of Students Living in Attendance Area • Current Level of Student Achievement • Other Factors

This rubric was then applied to elementary schools through a sub-committee that made recommendations about closing or repurposing school(s) to the larger Exploration of Budget Solutions Committee.



School Boundaries

Elementary Schools

The committee has examined the location of student populations across elementary schools to determine the density of students who live in the attendance areas. Goodland Elementary still has fewer students in the school’s attendance area than the number needed to fill the school to capacity. Students from overcrowded schools like Fratt and SC Johnson have been displaced to Goodland during the 2012-13 school year. Wind Point also continues to be unable to fill to capacity due to fewer students in their attendance area.

Julian Thomas, Roosevelt and Schulte have enrolled fewer students than is indicated by building capacities during the 2012-13 school year. Students have been displaced from Wadewitz and Julian Thomas (based on grade level & SAGE Program) to Wind Point during the 2012-13 school year. In addition, SC Johnson and Wadewitz continue to experience enrollment numbers beyond their school capacities.

The concentration of students around the former Winslow Elementary School is very high. There are 868 students who are bused to twenty other elementary schools. The largest number (203) attends SC Johnson Elementary with 85 attending North Park Elementary.

The RUSD Transportation Department has examined elementary school boundaries to fill schools to capacity, to reduce overcrowding in specific schools, and to balance enrollment by race and socio-economic status. Mr. Starken was given the charge to adjust boundaries to reduce enrollments at SC Johnson and Wadewitz and to increase enrollment at Goodland, Olympia Brown, Dr. Jones, North Park, Schulte, Julian Thomas, and Roosevelt Schools.

With the adjustments of boundaries, it is anticipated that North Park Elementary will no longer qualify for Tile I status. It is anticipated that Dr. Jones Elementary will qualify for Title I status.

*Please see Addendum F (Adjustments to Boundaries – percentage by race, and percentage by SES), Addendum G (Third Friday Count Enrollment Numbers 12-13 SY) and Addendum H (2012-13 Elementary School Displacements).


Exploration of Budget Solutions 2012 Middle Schools

Since RUSD middle schools are not over crowded compared to capacity nor are they seriously under enrolled, no changes in configuration or boundary changes are being recommended for middle schools.

Some innovations are being recommended to make changes in instructional practices to improve student achievement, such as remodeling science labs to accommodate Science, Technology, Engineering, and Mathematics (STEM) programs. Remodeling of these labs will be completed by Fall 2013. Throughout the summer prior to the new science labs being completed, teachers will receive professional development to prepare for implementation of STEM classes. A study committee has been working since mid 2011-12, to examine appropriate instructional practices to improve outcomes for middle school students.

High Schools

Horlick High School is the only comprehensive high school that is over enrolled. Case and Park High Schools are at or slightly under the capacities of their buildings. There will be no attempt to adjust boundaries for high school students at this time. However, in compliance with OE-10, all boundaries will be reviewed annually.



Open Enrollment

Based on the data in Addendum Item I (Open Enrolled 11-12), the number of students who have left RUSD to participate in Open Enrollment and to attend another public school district is 1,053 in grades 4K through 12. The breakdowns of the number by school level are:

Level Open Enrolled Students (2011-12 SY) Elementary

335

Middle

259

High 459

These numbers indicate that the District needs to provide educational options for parents to choose for their children. One of those options to address the loss of students at the secondary level is the expansion of the REAL School. Each year, the program has more applications than there are seats available, especially at grade six.



Innovation Proposals

The committee reviewed proposals from a number of schools to determine if the programs being proposed would maintain student enrollments, create significant changes in the school program, and improve student outcomes. The following proposals were reviewed by the Exploration of Budget Solutions Committee based on the three criteria stated above and are being submitted for consideration to the Board of Education.

• International Baccalaureate (IB) Programme continuation for Jefferson Lighthouse, McKinley, and Case. Include the expansion of the Middle Years Programme (MYP) to Case High School in grades 9-10.

• Initiation of a STEM program at Starbuck Middle School. This program will infuse project-based learning combined with a cross-curricular approach to teaching STEM courses. Teachers of these subjects will form teams to plan and to deliver instruction.

• Initiation of a Science, Technology, Engineering, Arts, Mathematics (STEAM) program at Goodland Elementary, Red Apple Elementary and Mitchell Middle. This approach will infuse project-based learning combined with a cross-curricular approach to teaching STEAM courses. At the middle school level, teachers will form teams to plan and deliver instruction.

• Initiation of a Business Education for a New Century program to infuse business education classes and programs in the middle school curriculum. Jerstad-Agerholm Middle School has some elements of this program in place. Implementation of this approach will require the addition of 1.4 FTE and will require that the elements be organized into a cohesive whole.

The following proposals were reviewed by the Exploration of Budget Solutions Committee and will not be submitted to the Board of Education, as they did not meet the established criteria.

• Creation of a PreK-8 program at Gifford Elementary School • Creation of a World Languages Program at Jerstad-Agerholm Elementary School • Creation of Racine School of Languages (RSOL) PreK-8 Dual Language Academy • Creation of a College Preparatory School at SC Johnson Elementary • Creation of a Montessori Program at Schulte Elementary School • Racine Academy of Success/Alternative School for Underachieving Students (referred to DWSIC

process) • REAL II Transformative Elementary School (referred to DWSIC process)





Recommendations

The Exploration of Budget Solutions Committee is recommending implementation of the following actions and programs for approval by the Board of Education.

2013-14 School Year

A sub-committee of the Exploration of Budget Solutions Committee applied a rubric, Addendum E, to all of the elementary schools. The two schools that obtained the lowest score were Wind Point (74) and Olympia Brown (80). Wind Point had low scores in many areas evaluated – especially in the areas of building condition, density of students living in the school’s attendance area, and low academic achievement. Olympia Brown had low scores for condition of the building. The school that had the third lowest score is Knapp (86). The score is based on the condition of the building, the status as a priority school and student achievement.

As the result of this examination of the buildings, the committee is recommending closure of Wind Point at the end of the 2012-13 school year. Administration will work with principals of Wind Point and the receiving schools to develop a transition plan for students who currently attend Wind Point. The transition plan could include a tour of the new schools with the District providing transportation for these students during the school day. If could also include parent meetings at the new schools to answer questions parents may have about the receiving school.

Boundary Adjustments

Boundary adjustments are being recommended to fill schools to capacity and to reduce overcrowding at SC Johnson and Wadewitz Elementary Schools. Schools that will be filled to capacity are Dr. Jones, Goodland, Julian Thomas, North Park, Olympia Brown, Roosevelt, Schulte and West Ridge. Addendum F shows the changes.

Administration will work with principals of the affected schools to develop a transition plan for the students who will be moved based on boundary adjustments. This plan could include having students and parents visiting the new school of attendance.

Four-Year Old Kindergarten

It is recommended that four-year old kindergarten classes be added to elementary schools as space and density of student population warrant.


Exploration of Budget Solutions 2012 Recommendations for Innovations

STEAM and STEM Proposals Proposals were submitted from schools to describe programs that have the potential to change instructional practices to improve student achievement. Four schools proposed implementation of STEAM or STEM programs. Red Apple, Goodland and Mitchell Middle have proposed implementation of STEAM projects, and Starbuck Middle School has proposed implementation of STEM.

Professional development will be provided to these schools to prepare teachers to develop instructional practices that lead to implementation of STEAM/STEM projects. Staff members at Goodland and Red Apple Schools will receive professional development to implement a STEAM Program beginning January 2013 through a professional development grant obtained by Mr. John Surendonk, Elementary Science Coordinator. The two schools will begin to implement the program as soon as professional development is complete. Mr. Surendonk will guide them in this process.

STEAM and STEM programs at Mitchell and Starbuck Middle Schools will be developed through School Improvement Plans (SIPs) and with the remodeling of the science rooms at each middle school. Each school will need additional professional development, materials and equipment to implement the STEAM and STEM initiatives during the 2013-14 school years. Professional development will be delivered through Chiwaukee Academy during the summer.

Even though Gilmore, Jerstad-Agerholm and McKinley Middle Schools did not submit proposals for STEM programs, the science labs will be remodeled by fall of 2013, and these schools will also receive professional development through Chiwaukee Academy during the summer.

IB Programming Jefferson Lighthouse and McKinley have received authorization to implement the IB Programme during the 2012-13 school year. Case High School is exploring the possibility of implementing the MYP of the IB Programme in grades 9-10 in the near future (implement by 2013-14 school year). These schools will continue to develop and implement the program during the next three school years. Each school will continue to need support from the Board of Education and administration to provide funds to pay fees and to provide technology and professional development to fully implement program.

Jerstad-Agerholm: Business Education for a New Century Based on a survey of school staff, it was determined that Jerstad-Agerholm Middle School staff supported the development of a business focus for students. It is believed that a focus on business, finance and economics will serve students and the community well. Development of business acumen, accounting skills and financial understanding would help make middle school students to be career and college ready, equipped to make good decisions about their own finances as well as desirable candidates for employment positions in the business life of the Racine community. Jerstad-Agerholm already has developed elements of this program, which need to be connected. They have or are developing partnerships with Bradley Haag (Career & Technology Education Supervisor), Educators Credit Union, Rotaries, Junior Achievement, etc. The school could also develop a partnership to continue the effort through to Horlick High School.


Exploration of Budget Solutions 2012 Virtual Programming The District began implementation of virtual programming in the 2010-11 school year. Since then, the program has expanded to 450 students. The program has been presented to the DWSIC and is moving forward to provide virtual classes to students in middle schools and high schools. These courses are offered to students to supplement – not replace face-to-face classes. It is recommended that the District continue to support this program since it is a successful approach that students and their parents are seeking. It is hoped that these classes will help keep students in the District, attract some students back to the District and offer these classes to private school students.

2014-15 School Year

The Exploration of Budget Solutions Committee urges the Board of Education and administration to begin planning to implement the following projects over the next four years.

New School Construction The Board of Education and administration are urged to work collaboratively with City of Racine Mayor, John Dickert, to design renovations for the current Winslow School site to create an elementary charter school with a capacity of 600 students in the central city that would provide educational services to students who live in the area. This school could serve as an impetus for revitalizing the central city. The elementary program would be developed as a STEAM focused, wraparound elementary school. The school would leverage existing community services and agencies to help close the achievement gap in tandem with highly effective and engaging instructional practices with wraparound services to address unmet needs that hinder students' achievement. Programs and classes could be developed to bring parents into the school in the evening to work with agencies such as Workforce Development Center, Racine County Human Services and other programs to learn skills and access services.

If the District were to acquire the current St. Luke's Hospital site, a high school magnet program in cooperation with Gateway Technical College (GTC) could be developed. The high school magnet school would focus on health care careers spanning from CNA certification at GTC to pre-medical studies at UW-Parkside. Existing facilities could be utilized by RUSD during the daytime and post-secondary institutions in the evening (similar to the arrangement GTC has with Kenosha Unified School District at Lakeside Academy). RUSD students would be able to graduate with a significant portion of associate degree work that should be able to directly transfer to UW-Parkside's pre-medical program.

Additionally, it is recommended to build a new school on the property currently occupied by Wind Point Elementary School that will provide a building to accommodate the students who currently attend Olympia Brown and Wind Point Elementary Schools. This project would require a referendum. This construction could potentially provide space for expansion of the REAL School.

At the same time, it is recommended that the REAL School be expanded to an enrollment of 550 students to provide an expanded option for parents and students at the middle and high school levels. Each year the REAL School receives more applications than can be accommodated with the current location and enrollment caps based on available space. This would potentially result in having more parents consider this option, thus, keeping more students in RUSD at the middle school and high school levels. This option could


Exploration of Budget Solutions 2012 include a referendum to repair the Olympia Brown site or to find a different location at a cost of approximately $13 million.

Since Knapp Elementary received the third lowest score on the rubric, based on condition of the building, priority school status and student achievement, it is recommended that the District consider constructing a new building on the Knapp site. This would provide educational services in a school that is a neighborhood school with a large population of children who live in close proximity to the school. This is truly a walk-in school with busing for only students with disabilities. Closing this school is not an option because there is not enough space in surrounding schools to accommodate the number of students who live in this attendance area. This would need to be included in a referendum.

All four of these projects would be included in one referendum to construct two elementary schools, renovate and expand a third elementary school and either repair Olympia Brown School or find a different location for the REAL School.

IB School Expansion It is recommended that the IB Programme be expanded to two additional elementary schools and one additional middle school during the 2014-15 school year. Administration would work with assistant superintendents and principals to determine which additional elementary school and which middle school would be selected for implementation. West Ridge Elementary staff has expressed interest in implementing IB Programme. This arrangement would provide a continuum of services among all levels (elementary, middle and high) for parents to choose for their children. IB is a sound educational program that has the potential to improve outcomes for students across all demographic groups in grades K-12.

Addendum A

2012 - 2013RUSD 4KSCHOOL ROOM TEACHER SESSION REG EC CLASS MAX Confirmed w/Secretary

FRATT 230AM 230AM AM 18 18 09/10/12 √ Sent email 06/11

FRATT 230PM 230PM PM-BILING 19 18 10/09/12 √ Sent email 06/11

GIESE 007AM POPLAWSKI AM 18 18 09/14/12 √ Sent email 06/13

GIESE 007AM POPLAWSKI PM 18 18 11/26/12 √ Sent email 06/13

GIFFORD 011AM STASZAK AM 20 20 12/12/12GIFFORD 011PM STASZAK PM 20 20 11/30/12GIFFORD 013AM SIKORA AM 20 20 09/13/12 15 with C.Fergus

GIFFORD 013PM SIKORA PM 15 15 08/30/12GIFFORD 013PM STANGLER PM - EC X 7 8 08/26/12GOODLAND 001AM BALESTRIERI AM 13 15 12/03/12 √ Sent email 06/13

GOODLAND 001AM MATHEWS AM - EC X 8 8 10/09/12 √ Sent email 06/13

GOODLAND 001PM BALESTRIERI PM 15 15 11/12/12 √ Sent email 06/13

GOODLAND 001PM MATHEWS PM-EC X 5 8 09/21/12 √ Sent email 06/13

JANES 104AM GARZA-BLAS AM-BILING 14 18 11/09/12 √ Sent email 06/13

JANES 104PM GARZA-BLAS PM 17 18 11/09/12 √ Sent email 06/13

J. AGERHOLM 024AM WENDT AM 18 18 09/06/12 √ Sent email 06/13

J. AGERHOLM 024PM WENDT PM 18 18 09/19/12 √ Sent email 06/13

J. THOMAS 127EA LOPEZ AM BILING 15 15 11/01/12 √ Sent email 06/13

J. THOMAS LEBECKIS AM EC X 0 4 07/17/12 √ Sent email 06/13

J. THOMAS 127EP LOPEZ PM 15 18 12/05/12 √ Sent email 06/13

KNAPP 201AM KHREISH AM 18 18 12/06/12 √ Sent email 06/13

KNAPP 201PM KHREISH PM 19 18 09/13/12 √ Sent email 06/13

MITCHELL 127AM LEFFLER AM 19 18 11/12/12 √ Sent email 06/12

MITCHELL 127PM LEFFLER PM 16 18 10/29/12 √ Sent email 06/12

O. BROWN 217AM GILL AM 18 18 08/31/12 √ Sent email 06/12

O. BROWN 217PM GILL PM 16 15 08/31/12 √ Sent email 06/12

O. BROWN 217PM POSTLES PM X 6 8 09/01/12 √ Sent email 06/12

RED APPLE 318AM BOMBIEN AM 15 15 07/17/12 √ Sent email 06/13

RED APPLE 318AM HOFMEIER AM EC X 4 8 06/13/12 √ Sent email 06/13

RED APPLE 319AM SHORE AM REG 15 15 06/13/12 √ Sent email 06/13

RED APPLE 319AM HANNEMAN AM EC X 8 8 06/13/12 √ Sent email 06/13

RED APPLE 318PM BOMBIEN PM REG 16 15 11/30/12 √ Sent email 06/13

RED APPLE 318PM HOFMEIER PM EC X 2 8 08/16/12 √ Sent email 06/13

RED APPLE 319PM SHORE PM REG 15 15 09/19/12 √ Sent email 06/13

RED APPLE 319PM HANNEMAN PM EC X 8 8 11/30/12 √ Sent email 06/13

ROOSEVELT 104AM KILMAN AM 18 18 11/29/12 √ Sent email 06/13

ROOSEVELT 104PM KILMAN PM 18 18 09/13/12 √ Sent email 06/13

SC JOHNSON 9AM BRZEZINSKI AM 18 18 09/19/12 √ Sent email 06/13

SC JOHNSON 9PM BRZEZINSKI PM 18 18 12/17/12 √ Sent email 06/13

SCHULTE 102AM JENKINS AM 20 20 01/07/13 √ Sent email 06/13

SCHULTE 102PM JENKINS PM 19 20 11/27/12 √ Sent email 06/13

WADEWITZ 092AM SEEGER AM REG 14 15 11/27/12 √ Sent email 06/13

WADEWITZ 092AM BRADEN AM EC X 7 8 12/06/12 √ Sent email 06/13

WADEWITZ 092PM SEEGER PM REG 15 15 11/26/12 √ Sent email 06/13

WADEWITZ 092PM BRADEN PM EC X 8 8 12/06/12 √ Sent email 06/13

WIND POINT 008AM HATFIELD AM 19 18 08/27/12 √ Sent email 06/12

WIND POINT 008PM MILLER PM 19 18 09/05/12 √ Sent email 06/12

TOTALS 618 63 625 84681 MAX TOTALS 709 11/30/12TOTAL REG & EC

RACINE EARLY EDUCATION CENTERCLASSROOM TOTALS

2012 - 2013

12/13/12

ROOM TEACHER REG EC HS M F B W H AI A Date Max Max

101 AM VACANT X X X X X X X X X X X

101 PM VACANT X X X X X X X X X X X X 110 AM LATHAM 15 1 7 8 5 5 4 1 09/13/12 15 110 AM KRONER X 5 4 1 3 1 1 11/08/12 8 8110 PM LATHAM 15 11 8 7 11 3 1 09/06/12 15

110 PM KRONER X 9 1 6 3 6 1 1 1 11/08/12 8 8201 AM CARLSON 17 9 8 6 8 3 12/17/12 17 1 Spot Resrv from 210

201 PM CARLSON 19 8 10 9 14 3 2 12/11/12 18

202 AM LIPARI 18 1 9 9 6 7 4 1 11/13/12 18

202 PM LIPARI 17 10 8 9 12 2 1 1 1 12/10/12 18

203 AM NEWBY 18 9 9 10 5 3 11/26/12 17 1 Spot Resrv from 210

203 PM NEWBY 19 11 8 11 14 1 4 11/07/12 18

205 AM BAUMGARDT 18 9 9 9 5 3 1 12/10/12 17 1 Spot Resrv from 209

205 PM BAUMGARDT 19 8 12 7 11 4 4 10/25/12 17 1 Spot Resrv from 209

206 AM VENEGAS 16 10 6 1 15 09/01/12 20

206 PM VENEGAS 13 4 5 8 1 12 10/17/12 15

206 PM LEBECKIS X 2 2 2 01/07/13 4 4 Resrv Christopher Flores

209 AM LUCZAK X 7 6 1 3 3 1 12/10/12 8 9209 PM LUCZAK X 6 5 1 3 2 1 12/11/12 8 9210 AM HOGANS X 5 4 1 4 1 12/13/12 8 9210 PM HOGANS X 8 6 2 2 2 4 12/10/12 8 9

ITINERANT

TOTALS 204 42 55 137 109 119 54 65 1 7 257 56Total Reg & EC 246Total M & F 246Total Race 246

2012-2013OFFSITE PROVIDERSCLASSROOM TOTALS

12/13/12

SCHOOL ROOM TEACHER SESSION # STUDENTS

# STUDENTS ALLOWED

ALMOST HOME KLOCKOW AM 20 20 11/12/12 √ATONEMENT BABUSUKUMAR AM 21 20 09/06/12 √ATONEMENT BABUSUKUMAR PM 20 20 10/23/12 √DISCOVERY STAGE THOMA AM 20 20 12/17/12 √HEAD START GREEN AM 17 17 09/08/12 √HEAD START GREEN PM 17 17 08/09/12 √JOHN PAUL II ANGELINI AM 19 20 12/04/12 √JOHNSON WAX 117 AM DUDA AM 8 20 11/20/12 √JOHNSON WAX 117PM DUDA PM 9 13 09/01/12 √JOHNSON WAX 154AM CHAMBERS AM 16 20 11/05/12 √KINDERCARE COOK AM 19 20 12/12/12 √RACINE COOP 001AM JANUSIAK AM 21 21 09/14/12 √RACINE COOP 001PM JANUSIAK PM 15 21 12/06/12 √RACINE COOP 002PM KOBRIGER PM 15 21 01/07/13 √SERENDIPITY KREMPELY AM 15 20 12/12/12 √TLC SABOL/LUCARELI AM 35 35 09/15/12 √

TOTALS 287 325

Addendum B

Brown ES 454 474 15 4 Rooms 150, 255, 217, 218, 220, 250 and 106 are of sub-standard size. Rm. 106 - chronic leaks occur.

Bull Fine Arts ES 348 344 8 4 5 Specialist Rooms-Drama, Dance, Vocal Music, Art, Band/Orchestra; 1 Computer Lab; 1 Library

Dr. Jones ES 452 480 13 + 1 4K 8 Does not include SPED (CDS), Bridge or SPED Resource rooms

Fratt ES 497 580 7 14 There is 1 primary room and 1 intermediate room that are not being used.

Giese ES 398 425 14 4 SAGE: 14 @ 18 = 252 Primary; 4 @ 30 = 120 Intermediate; Total = 372

Gifford ES 945 986 24 10SNK to small for 28 per, but is in count. SNK-2; K-7; 1-5; 2-5; 3-5} = 672; 4-4; 5-6; 1-Bridge; 1-Open(4)

Goodland ES 363 450 10 7104 is a Bridge Room (not counted); 106 is a Counselor/SW group room (counted in Intermediate);Music and Art rooms not counted.

Janes ES 412 458 11 5 These totals exclude the Bridge Rm., Sp. Ed., Title I, Art and Music rooms.

Jefferson Lighthouse ES 601 632 14 8

HR: Primary=14; Intermediate=8; Specialists=4 (215, Art, Gym, 316); Gym=1; Primary Rooms-101,102, 103, 104, 105, 106, 214, 216, 217, 219, 314, 315, 317 and 319. Intermediate Rooms-200, 201,202, 203, 204, 205, 206 and 207

Jerstad-Agerholm ES 340 378 6 7 Totals are only Reg. Ed. They do not include Bridge Rm. or Inclusion

Julian Thomas ES 476 558 21 6 Primary = 588; Intermediate = 180; Total is 768 - 210 (558).

Knapp ES 470 546 7 14 Does not include 3 Resource, 2 EBD, Art or Music rooms

Mitchell ES 469 520 9 9 Does not include 2 SPED Resource, 2 Literacy, ECHI, HI, Art, Music, or Bridge rooms

North Park ES 453 486 12 6 (516 - 30 = 486) Intermeidate rooms 35 37, 41, 54, 56 & 58 are undersized max. capacity 25

School EnrollmentOptimalCapacity Primary Rooms

IntermediateRooms Notes

Elementary School Capacities - Enrollment 12.3.12

1

Red Apple ES (Magnet) 434 520 10 8

Red Apple EC/PCOC=280; Red Apple Magnet= ; OI x 2= ; Title I= ; ESL x 2+ ; Psych= ; PCOC= ;Magnet office= ; EC Parent Rm.= ; PCOC Parent Rm.= ; Speech Office x 4; Multi Purpose x 1 (Rm.400); YMCA-Kids Clug; Diagnostic offices; Science Rm.; Conf. Rm. 108, EC Workroom/4K pick-up;pull-out room 105

Roosevelt 355 436 7 6 202 is empty - could hold 30 students; Currently Special Ed - 3 rooms including Bridge Rm.

SC Johnson 633 676 17 8

Schulte ES 411 492 8 20 Does not include SNK, Bridge, Art, Music, ESL/OT or LD Resource rooms

Wadewitz ES 685 670 16 8Student count includes: 1-4K/4EC (44 students); 2-Bridge rooms (16 students); 2-CDS rooms (20students); 1-OI (10 students)

West Ridge ES 433 556 16 7 Does not include 2 SPED Resource, ECOI, Music, Art, Computer Lab or Instrumental Music rooms

Wind Point ES 248 294 8 3(Primary rooms are 2 @ 18 and 6 @ 28.) + Bridge, Music, Art, Sp. Ed. Resource Rm.,Library/Computer Lab

School EnrollmentOptimalCapacity Primary Rooms

IntermediateRooms Notes

Elementary School Capacities - Enrollment 12.3.12

2

Addendum C

SCHOOLS 2008-09 2009-10 2010-11 2011-12 2012-13Proj.

2013-145YR % Chng

6YR % Proj Chng

106 - Bull Fine Arts 304 300 313 314 336 335 10.5% 10.2%111 - B Jones 471 470 480 474 450 447 -4.5% -5.1%112 - Olympia Brown 510 476 507 462 442 419 -13.3% -17.8%113 - Off Site Kindergarten 304 300 313 314 336 335 10.5% 10.2%114 - Racine EEC 304 300 313 314 336 335 10.5% 10.2%118 - Fratt 536 524 514 490 499 478 -6.9% -10.8%119 - Gifford 960 946 974 937 943 936 -1.8% -2.5%120 - Julian Thomas 426 433 464 460 475 493 11.5% 15.7%121 - Giese 346 376 385 379 393 400 13.6% 15.6%122 - Goodland 315 347 339 357 349 346 10.8% 9.8%130 - Janes 415 407 421 398 415 415 0.0% 0.0%132 - Jefferson Lighthouse 554 563 566 564 594 595 7.2% 7.4%134 - Jerstad 370 341 349 355 335 324 -9.5% -12.4%136 - Johnson 582 587 601 596 634 640 8.9% 10.0%138 - Knapp 529 511 442 454 460 473 -13.0% -10.6%148 - Mitchell 510 463 445 478 484 489 -5.1% -4.1%150 - North Park 467 479 472 441 446 452 -4.5% -3.2%154 - Roosevelt 384 358 353 316 349 344 -9.1% -10.4%162 - Wadewitz 611 695 699 746 688 693 12.6% 13.4%164 - West Ridge 423 411 422 405 422 436 -0.2% 3.1%166 - Schulte 374 382 430 420 440 460 17.6% 23.0%168 - Wind Point 292 281 281 279 237 226 -18.8% -22.6%174 - Red Apple 410 446 434 438 432 419 5.4% 2.2% Total Elementary

280 - Gilmore 750 800 755 788 744 740 -0.8% -1.3%282 - Jerstad Middle 784 787 788 738 696 697 -11.2% -11.1%284 - McKinley 857 870 897 859 836 801 -2.5% -6.5%286 - Mitchell 730 698 724 772 753 734 3.2% 0.5%288 - Starbuck 757 794 806 772 769 764 1.6% 0.9%310 - Walden III 524 525 527 515 542 568 3.4% 8.4%375 - REAL School 234 298 294 295 316 323 35.0% 38.0%491 - J.I. Case 2001 1984 1978 1859 1841 1826 -8.0% -8.7%492 - Horlick 2064 2096 2003 2027 2064 2064 0.0% 0.0%494 - Washington Park 2179 2046 1860 1778 1711 1697 -21.5% -22.1% Total MS, HS and Special

Open Enrollment Out 526 650 690 866 1053 1184 100.2% 125.1%

RUSD 3rd Friday Enrollments by School (2008-09 through Projected 2013-14)

K:\Finance\Budget\FY14 Budget\FY14 - Enrollment Projections11/30/2012

Addendum D

Middle School Capacity

Gilmore Jerstad Mckinley Mitchell Starbuck Case Horlick Park

Max 1,204 838 954 933 878 Max 1,663 1,554 1,744Optimum 1,071 740 846 828 779 Optimum 1,468 1,378 1,543

Ideal 1,031 679 880 844 724 Ideal

Maximum 1,492 1,052 1,250 1,703 1,300 Maximum 2,374 1,884 1,700

Locker 600 680 750 780 900 Enrollment 1,858 2,014 1,779Cafeteria 275-‐300 275-‐300 250-‐275 250-‐275 250-‐275 Square Feet (sf) 272,949 246,586 316,031

Rooms 49 35 42 45 39 sf/student 146.9 122.4 177.6

Enrollment 744 696 836 753 769Square Feet (sf) 138,699 95,436 114,165 127,000 125,539

sf/student 186.4 137.1 136.6 168.7 163.2

Without Offices1 1029 814 943 857 1000With Offices2 1200 950 1100 1000 1050

Notes1 Without Offices = Means Classrooms are used for planning periods and are unavailable for use by other teachers2 With Offices = Means Classrooms are not used for planning periods and are available for use by other teachers

revised 11/29/12

Classroom Use/Capacity

Paulin Study

School Self Report

Current Utilization

High School Capacity

School Self Report

Paulin Study

Per Visit

Current Utilization

Budget Committee Meeting31-‐Oct-‐12

Addendum E

Addendum F

Maximum Optimal Optimal NewCapacity Capacity 3rd Friday 3rd Magnets Skyward Sky MagnetsNew BoundariesCapacity vs Boundaries

Bull Fine Arts 344 336 330Dr Jones 604 480 449 431 477 3O' Brown 474 474 442 438 455 19Fratt 580 553 499 472 479 74Gifford 986 986 943 913 889 97Giese 512 425 393 388 453 -‐28Goodland 490 450 349 337 431 19Janes 458 415 398Jefferson 632 594 597Jerstad 378 342 335 331 347 -‐5Johnson 724 676 634 621 516 160Julian Thomas 768 558 477 454 535 23Knapp 660 546 460 449 531 15Mitchell 522 520 484 467 418 102North Park 486 462 446 431 438 24Red Apple 520 432 469REEC 260 260 229 234Roosevelt 466 436 349 351 382 54Schulte 632 492 440 428 527 -‐35Wadewitz 778 670 688 665 635 35West Ridge 658 556 422 409 539 17Wind Point 294 237 237

12226 8886 8276 1777 8056 1794 8052 574

CurrentF N R Total % F & R Min Maj total %

Dr Jones 254 159 23 436 64% 242 194 436 56%O' Brown 175 260 9 444 41% 140 304 444 32%REEC 182 42 10 234 82% 182 52 234 78%Fratt 335 104 32 471 78% 291 180 471 62%Gifford 207 669 42 918 27% 226 692 918 25%Giese 297 60 30 387 84% 299 88 387 77%Goodland 267 62 9 338 82% 233 105 338 69%Jerstad 224 80 27 331 76% 178 153 331 54%Johnson 477 100 44 621 84% 455 166 621 73%Julian Thomas 384 28 32 444 94% 416 35 451 92%Knapp 336 99 28 463 79% 342 102 444 77%Mitchell 286 119 29 434 73% 330 133 463 71%North Park 250 83 18 351 76% 226 208 434 52%Roosevelt 517 93 57 667 86% 209 142 351 60%Schulte 235 145 35 415 65% 513 154 667 77%Wadewitz 209 197 24 430 54% 196 219 415 47%West Ridge 159 65 12 236 72% 157 273 430 37%Wind Point 419 14 18 451 97% 139 97 236 59%

Total 5213 2379 479 8071 71% 4774 3297 8071 59%

ProposedF N R Total % F & R Min Maj total %

Dr Jones 341 112 24 477 77% 337 140 477 71%O' Brown 159 280 16 455 38% 132 323 455 29%Fratt 323 131 25 479 73% 267 212 479 56%Gifford 204 637 48 889 28% 220 669 889 25%Giese 333 78 42 453 83% 324 129 453 72%Goodland 325 86 20 431 80% 313 118 431 73%Jerstad 199 117 31 347 66% 163 184 347 47%Johnson 388 98 30 516 81% 353 163 516 68%Julian Thomas 503 11 21 535 98% 494 41 535 92%Knapp 434 58 39 531 89% 383 148 531 72%Mitchell 273 121 24 418 71% 266 152 418 64%North Park 276 139 23 438 68% 212 226 438 48%Roosevelt 278 82 22 382 79% 236 146 382 62%Schulte 249 236 42 527 55% 223 304 527 42%Wadewitz 485 101 49 635 84% 480 155 635 76%West Ridge 383 131 25 539 76% 366 173 539 68%

Total 5153 2418 481 8052 70% 4769 3283 8052 59%

1 2 3 4 5 AM KG PM TotalDr Jones 66 60 73 73 69 27 79 30 477O' Brown 76 56 76 72 65 29 52 29 455Fratt 79 77 64 61 61 39 81 17 479Gifford 126 145 127 105 139 47 162 38 889Giese 72 56 59 51 63 35 85 32 453Goodland 61 66 58 59 55 28 77 27 431Jerstad 33 55 47 57 53 22 63 17 347Johnson 71 80 71 85 67 26 86 30 516Julian Thomas 90 88 64 77 93 23 68 32 535Knapp 65 77 82 70 81 23 98 35 531Mitchell 79 55 62 53 55 31 66 17 418North Park 61 72 69 63 57 20 76 20 438Roosevelt 56 48 49 60 64 21 58 26 382Schulte 63 79 69 88 69 29 97 33 527Wadewitz 93 99 93 84 100 24 119 23 635West Ridge 80 80 77 74 72 33 99 24 539

1171 1193 1140 1132 1163 457 1366 430 8052

Addendum G

Addendum H

Brown 1st 76 0 73 2

Brown 2nd 65 0 63 0

Brown 3rd 67 0 67 2

Brown 4K 40 0 44 8

Brown 4th 61 0 60 7

Brown 5th 69 0 69 3

Brown EC 18 0 16 0

Brown K 63 0 62 12

Brown Total 454

Dr. Jones 1st 77 0 77 0

Dr. Jones 2nd 66 0 66 4

Dr. Jones 3rd 77 0 77 1

Dr. Jones 4th 65SC JohnsonOverflow 0 65 12

Dr. Jones 5th 64 0 64 13

Dr. Jones EC 30 0 30 ?

Dr. Jones K 73 0 73 3

Dr. Jones Total 452

Fine Arts 1st 55 0 55 1

incl. Sp. Ed.As 1 1/2-notincl. speech

School Grade Head Count Add From Location Displaced To Location Total Open

enrollment-displacement update (work in progress) - Head Count-Displacement 12.3.12

1

Fine Arts 2nd 59 0 59 0


Fine Arts 3rd 57 0 57 0


Fine Arts 4th 63 0 63 0


Fine Arts 5th 59 0 59 0


Fine Arts K 55 0 55 1


Fine Arts Total 348

Fratt 1st 86 1 Goodland 86 2 in dual lang.

Fratt 2nd 76 1 Goodland 76 0

Fratt 3rd 73 0 73 3

Fratt 4K 37 0 37 0

Fratt 4th 60 0 60 13 Eng.-18 Bil.

Fratt 5th 76 0 76 6 Eng.-8 bilin.

Fratt K 89 6 5 Knapp/1 Goodland 89 1 in dual lang.

Fratt Total 497

Giese 1st 66 0 68 0

Giese 2nd 51 0 52 4

Giese 3rd 54 0 54 0



2

Giese 4K 36 0 36 0

Giese 4th 55 0 52 4

Giese 5th 55 0 56 3

Giese K 79 0 80 0

Giese Total 398

Gifford 1st 129 0 129

Gifford 2nd 138 0 138

Gifford 3rd 132 0 132

Gifford 4K 80 0 80

Gifford 4th 114 0 114

Gifford 5th 161 0 161

Gifford EC 9 0 9

Gifford K 182 0 182

Gifford Total 945

Goodland 1st 45 6 45 11

Goodland 2nd 55 1 55 1

Goodland 3rd 45 6 45 11

Goodland 4K 42 0 42 2reg am full reg pm

Goodland 4th 55 6 55 5



3

Goodland 5th 50 2 50 10

Goodland EC 10 0 10 5 cyc a 5 cyc b

Goodland K 60 7 61 24

Goodland Total 363

J-A ES 1st 44 0 44

J-A ES 2nd 54 0 54

J-A ES 3rd 49 0 49

J-A ES 4K 36 0 36

J-A ES 4th 52 0 52

J-A ES 5th 52 0 52

J-A ES K 53 0 53

J-A ES Total 340

Janes ES 1st 54 2 54 2 reg

Janes ES 2nd 56 2 56 0 reg ed

Janes ES 3rd 69 0 69 7 reg 10 bil

Janes ES 4/5 split 18 0 18 0 reg ed

Janes ES 4K 31 0 31 AM - 4 PM - 1

Janes ES 4th 56 0 56 1 reg 3 bil

Janes ES 5th 54 0 54 4 reg 2 bil



4

Janes ES K 74 5 74 0 reg, 10 bil.

Janes ES Total 412

Jefferson 1st 108 0 108 2

Jefferson 2nd 109 0 109 2

Jefferson 3rd 110 0 110 2

Jefferson 4th 115 0 115 6

Jefferson 5th 103 0 103 17

Jefferson K 56 0 56 0

Jefferson Total 601

Johnson 1st 101 2 98 10 reg, 1 bil.

Johnson 2nd 101 7 102 1 reg, 10 bil.

Johnson 3rd 99 9 99 8 bil.

Johnson 4K 36 5 36 0

Johnson 4th 104 15 104 16 bil.

Johnson 5th 88 10 88 2 reg

Johnson K 105 12 106 6 reg, 1 bil.

Johnson Total 633

Julian Thomas 1st 64 6 64 0

Julian Thomas 2nd 82 2 82 0



5

Julian Thomas 3rd 61 3 61 1

Julian Thomas 4K 33 0 33

Julian Thomas 4th 65 0 65 22

Julian Thomas 5th 83 0 83 3

Julian Thomas EC 15 0 15

Julian Thomas K 73 73 0

Julian Thomas Total 476

Knapp 1st 69 0 69 8

Knapp 2nd 65 1Roosevelt/ 1 Johnson Roosevelt/ Johnson 65 10

Knapp 3rd 66 0 66 9

Knapp 4K 37 0 37 0

Knapp 4th 68 0 68 7

Knapp 5th 66 0 66 9

Knapp K 99 1 Goodland 99 26

Knapp Total 470

Mitchell ES 1st 81 2 Dr. Jones/1Knapp Dr. Jones 81

Mitchell ES 2nd 66 0 66

Mitchell ES 3rd 72 0 72

Mitchell ES 4K 35 0 35



6

Mitchell ES 4th 63 1 Dr. Jones 63

Mitchell ES 5th 71 1 Giese 2 72

Mitchell ES K 80 0 80

Mitchell ES Total 469

North Park 1st 64 0 64 20

North Park 2nd 80 0 80 0

North Park 3rd 79 0 79 5

North Park 4th 69 0 69 0

North Park 5th 63 0 63 6

North Park EC 14 0 14 6

North Park K 84 1 West Ridge 84 0

North Park Total 453

Red Apple 1st 52 0 52 3

Red Apple 2nd 48 0 48 6

Red Apple 3rd 45 0 45 10

Red Apple 4K 88 0 88 N/A

Red Apple 4th 41 0 41 19

Red Apple 5th 56 0 56 4

Red Apple EC 43 0 43 N/A



7

Red Apple K 61 0 61 0

Red Apple Total 434

Roosevelt 1st 52 0 52

Roosevelt 2nd 56 0 56

Roosevelt 3rd 42 0 42

Roosevelt 4K 36 0 36

Roosevelt 4th 54 0 54

Roosevelt 5th 59 0 59

Roosevelt K 56 0 56

Roosevelt Total 355

Schulte 1st 61 1 0 61

Schulte 2nd 67 1 0 67

Schulte 3rd 63 0 63

Schulte 4K 37 0

Schulte 4th 82 0 82

Schulte 5th 56 0 56

Schulte K 82 0 82

Schulte Total 411

Wadewitz 1st 108 4 108



8

Wadewitz 2nd 104 3 104

Wadewitz 3rd 105 2 105

Wadewitz 4K 29 0 29

Wadewitz 4th 105 1 105

Wadewitz 5th 108 6 108

Wadewitz EC 15 0 15

Wadewitz K 111 17 111

Wadewitz Total 685

West Ridge 1st 65 0 65

West Ridge 2nd 78 0 78

West Ridge 3rd 68 0 68

West Ridge 4th 68 0 68

West Ridge 5th 58 0 58

West Ridge EC 6 0 6

West Ridge EC (OI) 12 12

West Ridge K 78 0 78

West Ridge Total 433

Wind Point 1st 26 2 4 28 0

Wind Point 2nd 38 1 5 39 17



9

Wind Point 3rd 26 0 0 26 2

Wind Point 4K 37 0 2 37 0

Wind Point 4th 36 2 2 38 22

Wind Point 5th 29 0 0 29 1

Wind Point K 49 2 14 51 5

Wind Point Total 248



10

Addendum I

Grades Grade Total Minority 4K 14 4k 14 2

KG-‐5 322 kg 42 76-‐8 260 1 50 5

9-‐12 460 2 42 81056 3 52 10

4 69 135 66 15

Going to 6 96 1817 Appleton Area 7 93 232 Bristol #1 8 71 182 Burlington Area 9 127 171 Central/Westosha UHS 10 126 296 Cudahy 11 103 191 Cumberland 12 105 263 Dover #124 Franklin Public22 Grantsburg From1 Greendale 2 Burlington1 Greenfield 84 Caledonia42 Kenosha 1 Elkhorn

112 McFarland 2 Franklin13 Merrill Area 68 Franskville1 Middleton-‐Cross Plains Area 2 Milwaukee3 Milwaukee 41 Mt.Pleasant1 Monroe 1 Oak Creek11 North Cape 753 Racine27 Northern Ozaukee 99 Sturtevant4 Norway J7 1 Twin Lakes

123 Oak Creek-‐Franklin Joint 2 Waterford16 Paris J1 105680 Raymond #146 Saint Francis Open enrolling into RUSD2 Silver Lake J1 Grade Total30 South Milwaukee 4K 1264 Union Grove J1 KG 2

259 Union Grove UHS 1 49 Waterford Graded J1 3 23 Waterford UHS 5 152 Waukesha 10 11 Wauwatosa 11 11 Whitnall 12 14 Wilmot UHS Total 24

112 Yorkville J21056

Addendum J

Board Consent Agenda

Racine Unified School District 3109 Mt. Pleasant Street, Racine, Wisconsin 53404

RACINE UNIFIED SCHOOL DISTRICT

OFFICIAL PROCEEDINGS

Dennis Wiser, President Gretchen L. Warner, Clerk

Racine, Wisconsin November 19, 2012

The Board of Education of the Racine Unified School District of Racine County, Wisconsin, was called to order at 6:33 p.m. on Monday, November 19, 2012.

2. ROLL CALL The following Board members were present: Pamala Handrow, Melvin Hargrove, Susan F. Kutz, Julie L. McKenna, Don J. Nielsen, Kim Plache, Gretchen L. Warner, and Dennis Wiser. Also present: Ann Laing, Superintendent; Dave Hazen, Chief Financial Officer; Dan Thielen, Interim Director, Human Resources; and Darlene Gallup, Recording Secretary.

3. ADOPT AGENDA Ms. Handrow moved, Dr. Warner seconded, to adopt the agenda. All were in favor.

4. RECOGNITIONS The following recognitions were made: For Advance Placement Scholar Designation Horlick High School students: Erik Brown, Patryk Czaczkowski, Madeline Ford, Shane Franke Reid Kurkerewicz Samuel Marquardt, Bryson McCleary, Jacob McReynolds, Athanasio Parthenis, Cristal Sanchez, Jacob Sokol, Kassondra Thoreson, Kenneth Xavier Park High School student, Rebecca Pozen For Advance Placement Honor Designation Horlick High School students: Kyle Christoph, Margaret Damaschke, Tiana Jacobs, Audrey Nichols, Travis Whitt Park High School students: Andrew Burdick, Kaitlynn Large For Advance Placement Distinction Designation Horlick High School students: Jonathan Chen, Allison Dikanovic, Ryan Kaestner, John Sandgren Walden High School student: Willard Kwak The following teachers were recognized for their contributions to the success o the AP program: From Horlick High School: Bryan Bassler, Chad Emmons, Katelyn Farrar, John Heinisch, Dan Hosmanek, Jeffrey Longsine, Justin Marcinkus, Brenda Olmstead, Johnathon Patzwald, Dana Popp, Kerry Sett, Gabriel Stoner, Drew Sword, Don Whitford, KaHeeAh Yang, Melissa Zeien From Park High School: Tony Arndt, Aurelie Bertuccci, Stacy Catrine, Steven Cipullo, Dawn Framstad, Brian Galley, Matthew Geisler, Barbara Hofmann, Matthew Landry, Susan Lawrence, William O’Malley, Anne Rocheleau, Janis Saidler, Gregory Smith, Marcia Sykes, Dwight Trieber From Walden High School: Stephanie Brooks, Peter O’Shea, Kim Prott, Thomas Rutkoski, Brian Toner

Board of Education

AP High School Coordinators: Susan Margraff, Horlick High School; James Visor, Park High School; Katie McCauley, Walden High School Gifted and Talented Coordinator, Cindi Larson

5. BOARD MEMBER REMARKS -None

6. PUBLIC COMMENTS Kari Steckbauer Spoke in favor of the YES student bill of rights. 4828 24th Avenue Racine, WI 53140 Bryanna Scott Spoke in favor of the YES student bill of rights. 1905 Prospect St. Racine, WI 53404 Lucero Rocha Spoke in favor of the YES student bill of rights. 1316 N Wisconsin Ave. Racine, WI 53402 Janet Serrano Spoke in favor of the YES student bill of rights. 1820 Jerome Blvd. Racine, WI 53403 Berenice Beltran M. Requested voting on the YES student bill of rights be postponed until after a 1222 Blake Ave. board work session. Racine, WI 53404 Victor Anguiano Spoke in favor of the YES student bill of rights. 2818 Loraine Avenue Racine, WI 53404 Jennifer Levie Requested voting on the YES student bill of rights be postponed until after a 421 William Street board work session. Racine, WI 53402 Roger Pfost Spoke on behalf of the Racine Taxpayers Association regarding opposition to the 3114 Caledonia St. district boiler replacements. Racine, WI 53402 Kennia Coranado Spoke in favor of the YES student bill of rights and request for a Board work session. 4043 State Road Racine, WI 53405 Jeanette Will Spoke regarding a program proposal to be used for preventing truancies. 1542 S. Memorial Racine, WI 53403

7. RESULTS FOR STUDENT ACHIEVEMENT - None

8. SUPERINTENDENT’S REPORT a. North Star – Olympia Brown Elementary – School Improvement Plan

Dr. Laing introduced Joan Kuehl, Principal, O. Brown Elementary School. Ms. Kuehl presented the school’s School Improvement Plan.

9. ACTION ITEMS a. Horlick Boys Basketball Team Participation in Sunday Game

Per WIAA rules, Article II, Section 5, B, the Board of Education must approve participation in an athletic event that takes place on a Sunday. Ms. Handrow moved, Ms. Plache seconded, to approve the Horlick Boys Basketball Team’s participation in the January 27, 2013, Battle of the Borders Tournament. Ayes – 8 (Handrow, Hargrove, Kutz, McKenna, Nielsen, Plache, Warner, Wiser). Noes – 0.

b. Y.E.S. Student Bill of Rights

Dr. Laing stated that the Board of Education received a request from Youth Empowerment in the Struggle (Y.E.S.) requesting approval of a “Y.E.S. Student Bill of Rights.” The Board of Education has not approved proposals of this nature from other individual groups in the past. It is the administration’s belief that approving this proposal would set precedence and recommends denial of this request. The Board discussed its obligation to provide a work session to hear student input on this subject and to have legal counsel input as well. In that end, it was the consensus of the Board to hold a work session to take place in January, 2013. Mrs. McKenna moved, Pastor Hargrove seconded, to send this item back for a study session. Ayes – 8 (Handrow, Hargrove, Kutz, McKenna, Nielsen, Plache, Warner, Wiser). Noes – 0.

c. 2011-12 Audit Presentation and Acceptance

Mr. Nielsen moved, Ms. Plache seconded, to defer voting for acceptance on this item until after the Audit Committee has had the opportunity to review the 2011-12 Audit in more detail. Ayes – 8 (Handrow, Hargrove, Kutz, McKenna, Nielsen, Plache, Warner, Wiser). Noes – 0.

10. OPERATIONAL EXPECTATIONS - None

11. BOARD DEVELOPMENT – None

12. REPORT OF BOARD COMMITTEES a. Audit – No report b. Legislative

The Legislative Committee will meet soon. c. Board Governance

The Governance Committee met this evening. Members updated the OGSM, Annual Monitoring Calendar, and voted to recommend renewal of the Aspen contract with support from the Johnson Foundation.

d. Communications The Communications Committee has met. They are working on developing Listening and Linking Sessions or focus groups around Results policies. They are also following up on the Communications Committee being involved in student engagement data and its goals.

e. Search Committee Mrs. Kutz said they have not recently met but will meet after the superintendent recruiting process application deadline has been met after January 8, 2013.

f. District Wide School Improvement Council (DWSIC) Mrs. McKenna reported the DWSIC talked about the review of the DWSIC process and essential questions for current, new and mandated programs. They received follow up reports on Virtual School, counseling mandates and professional development information.

g. Guiding Coalition Ms. Handrow talked about both the at home and away LAPs. She talked about the work being done on the achievement gaps strategies and the Panasonic Foundation desire to continue working with the district.

13. BOARD CONSENT AGENDA

a. Board Meeting Minutes of October 15, 2012 b. Executive Session Minutes of October 15, 2012 c. Special Board Meeting Minutes of October 29, 2012 d. Work Session Minutes of October 29 and November 5, 2012 (Attachments A and B) e. Communications Committee Minutes of October 1, 2012 (Attachment C) f. Renewal of Note for 2220 Northwestern Avenue

Mr. Nielsen moved, Ms. Plache seconded, to approve the Board Consent agenda items 13a-f. All were in favor.

14. RECEIVE AND FILE

a. Incidents by Students to Staff for October 2012 Without objection, the “Incidents by Students to Staff for October 2012” report was received and filed.

15. SUPERINTENDENT CONSENT AGENDA a. Personnel Changes b. Monthly Financial Statements for October 2012 c. Overnight Field Trips Ms. Handrow moved, Pastor Hargrove seconded, to approve the Superintendent’s Consent agenda items 15a-c. All were in favor.

16. REFERRALS - None

17. ADJOURNMENT Pastor Hargrove moved, Mr. Nielsen seconded, to adjourn. With no objections heard, the meeting was adjourned at 8:01 p.m.

BOARD DEBRIEFING OF THIS EVENING’S MEETING No debriefing forms were completed for this meeting. Signed: ____________________________ Gretchen L. Warner, Clerk Signed: ____________________________ Ann Laing, Secretary

ATTACHMENT A

Racine Unified School District 3109 Mt. Pleasant Street, Racine, Wisconsin, 53404


WORK SESSION


Racine, Wisconsin October 29, 2012

A Special Board meeting of the Board of Education of the Racine Unified School District of Racine County, Wisconsin began at 12:15 p.m. on Monday, October 29, 2012, with the following members present: Pamala Handrow (Left at 1:40 p.m.), Melvin Hargrove, Susan F. Kutz (Left at 2 p.m.), Julie L. McKenna, Don J. Nielsen, Kim Plache, William S. Van Atta and Dennis Wiser. Absent: Gretchen L. Warner. Also present: Darlene Gallup, Executive Assistant. The purpose of the meeting was a work session. The subject of the work session was:

1. Self Evaluation of the Board, Discuss Board Member Issues, Work with the Aspen Group Regarding the Evaluation of Current Board Performance, Discussion on Board Meeting Dates and Ties, Exploration of Board Debriefing Options, Review of Committee Structures, Consideration of Coherent Governance Training for New Superintendent and New Board Members, and Determination of Scope and Schedule for Future Work with Aspen. The board of education, with facilitation by the Aspen, Int. Group, discussed and conducted a self-evaluation of its work including current board performance, meeting dates and ties, debriefing options, committees Coherent Governance training and future work with Aspen.

No action was taken by the Board. The work session was adjourned at 2:43 p.m.

Board of Education

ATTACHMENT B



WORK SESSION



A Special Board meeting of the Board of Education of the Racine Unified School District of Racine County, Wisconsin began at 5:47 p.m. on Monday, November 5, 2012, with the following members present: Julie L. McKenna, Gretchen L. Warner, Dennis Wiser, Susan F. Kutz, Kim Plache, Pamala Handrow, Don J. Nielsen. Also present: Jeff Weiss, Assistant Superintendent, Elementary Education; Steve Miller, Director, Standards, Assessment and Accountability; Darlene Gallup, Executive Assistant. The purpose of the meeting was a work session. No action was taken by the Board.

2. State Assessment System Dr. Miller and Mr. Weiss shared information regarding the State Assessment System including:

• District/State Report Card (Focus and Priority Schools, Value Added Scores/Growth, SRC Scores, Accountability Ratings. Etc.)

• Review of Department of Public Instruction Office of Educational Accountability website • New Accountability Model – Based on a Point System: (Student Achievement, Student Growth,

Closing Gaps, On-Track and Postsecondary Readiness) • State Distribution of Overall Accountability Scores

North Park Elementary School staff presented what their school is working on to meet the State expectations. The presentation included information regarding:

• North Park Elementary School Vision • Professional Development Initiatives (WILA, SEWAC, PBIS, Read First, etc.) • Bulldog Agreements, Leadership Team Meetings, Seven Strategies, SIP Meetings, Early Release

Time, P.A.W.S. (Positive Action with Support)

3. Coherent Governance Policy Section OE-13 (Facilities) This item was removed from the agenda. Dr. Laing talked about difficulties administrators are having with constructive feedback on monitoring reports. Mr. Wiser said the template used by Dr. Miller and Mrs. Eisch for their reports is the appropriate format to be used in the future. Dr. Laing shared the steps that she is instituting for reports to be processed prior to coming to the board.

4. Discussion of District Evaluation Consensus of the board was to have Aspen do two more training sessions of staff members regarding Coherent Governance (three union leaders, new Cabinet members, and the new school board member). Dr. Miller will provide constructive feedback and training on report writing. The board agrees that the reports are not to come to the board until after they are considered by the superintendent to be “board ready.” It will be at the superintendent’s discretion as to whether or not to use Aspen to critique reports.

Board of Education

5. Discussion of Board Vacancy

To date, there are seven candidates for the vacant board position. There may be additional nominations. Two weeks from the date of the public announcement is the deadline for nominations. Consensus of the board was to have the interview meeting take place on November 26 at 6 p.m.

A Grievance Committee was formed by Mr. Wiser. Pastor Hargrove will chair the committee comprised of Don J. Nielsen, Pamala Handrow, Julie L. McKenna and Dennis Wiser as Ex Officio. Mr. Wiser said he will talk with RAMAC about tour dates after the completion of superintendent search work. The work session was adjourned at 7:43 p.m.

ATTACHMENT C

Racine Unified School District 2220 Northwestern Avenue, Racine, Wisconsin 53404-2597

BOARD OF EDUCATION

COMMUNICATIONS COMMITTEE

Monday, October 1, 2012 ASC Mygatts Room

MINUTES

Call to Order The Communications Committee meeting of Monday, September 17, 2012, was called to order at 5:36 p.m. Approve Agenda Ms. Plache moved, Mr. Nielsen seconded, to approve the agenda. All were in favor. Public Comments - None Approval of Communications Committee Minutes of September 17, 2012 Mr. Nielsen moved, Ms. Plache seconded, to approve the minutes of the Communications Committee meeting September 17, 2012. All were in favor. Review and Finalize the Communications Committee Objectives, Goals, Strategies and Measures (OGSM) and Communications Policy GC-5 Mr. Nielsen moved, Ms. Plache to recommend the policy be approved as presented. All were in favor. OGSM document was reviewed. Consideration will be given to including ways to support Dr. Laing’s “Project Strive” efforts in the future. The OGSM will come back to the committee at the next meeting. District Communication Plan and Update Mrs. Tapp provided an update of the communication plan. A lot of the information will be included in the Operational Expectations-9 (Communicating with the Public) Monitoring Report being presented at the board’s work session on October 1 and to the board at its meeting on October 15. Areas of discussion included:

• Review of the parent/community survey results (Results were consistent with last year) o Consider asking students whether they feel safe in their environment

• Collection of parent email addresses (currently at 1,500) • Having the “Pink Card” accessible online and streamlining the parent/family information (use SchoolNet,

asking questions during the parent/teacher conferences • The district website needs updating and needs to be mobile app usable • There will be talk in the future regarding WGTD marketing options for website advertising. A board policy

will need to be developed first Discussion on Next Steps of Listening and Linking Sessions or Community Dialogue No discussion on next steps at this time. Set Next Meeting Date and Agenda The next meeting of the Communications Committee will be November 5 at 5:30 p.m. Possible items for inclusion on the agenda include: -Approval of Communications Committee Meeting Minutes of October 1, 2012. -OGSM Document -Marketing Policy Discussion -Board Website Update Discussion

Board of Education

Adjourn Ms. Plache moved, Mr. Neilsen seconded, to adjourn at 6:02 p.m. All were in favor. Also Present: Respectfully submitted, Stacy Tapp, Director, Communications and Julie L. McKenna, Chair (Present) Public Information Melvin Hargrove (Absent) Darlene Gallup, Executive Assistant Don J. Nielsen (Present) Kim Plache (Present) Dennis Wiser, Ex-Officio (Present) Communications Committee

5:31 Racine Unified School District 3109 Mt. Pleasant Street, Racine, Wisconsin 53404





A special meeting of the Board of Education of the Racine Unified School District of Racine County, Wisconsin began at 6:03 p.m. on Monday, October 19, 2012, with the following members present: Pamala Handrow, Melvin Hargrove, Susan F. Kutz, Julie L. McKenna, Don J. Nielsen, Kim Plache, Dennis Wiser, Gretchen Warner. Also present: Ann Laing, Superintendent; Alyson Eisch, Director, Support Services; Darlene Gallup, Recording Secretary. The Board of Education met in open session for the sole purpose of considering a motion to adjourn to Executive Session per Wisconsin Statute for the purpose of

a. Student Expulsions and Suspensions, 19.85(1)(f) and 120.13(1)(c)4.d. Ms. Handrow moved, Mrs. Kutz seconded, to adjourn to Executive Session. All were in favor.

1. Student Expulsions Mrs. Kutz moved, Mr. Nielsen seconded, to approve the student expulsions as presented with the exception of the expulsion of student #63839 which was pulled for further review. All were in favor.

Mrs. Kutz moved, Pastor Hargrove seconded, to adjourn the Executive Session. Hearing no objections, the Executive Session was adjourned at 6:28 p.m. Signed: ____________________________ Gretchen L. Warner, Clerk Signed: ____________________________ Ann Laing, Secretary

Board of Education

5:31 Racine Unified School District 3109 Mt. Pleasant Street, Racine, Wisconsin 53404




Racine, Wisconsin December 3, 2012

A special meeting of the Board of Education of the Racine Unified School District of Racine County, Wisconsin began at 5:45 p.m. on Monday, December 3, 2012, with the following members present: Pamala Handrow, Melvin Hargrove, Susan F. Kutz, Julie L. McKenna, Don J. Nielsen, Dennis Wiser. Absent: Kim Plache, Gretchen Warner. Also present: Ann Laing, Superintendent; Alyson Eisch, Director, Support Services; Darlene Gallup, Recording Secretary; and Christopher J. Eperjesy. The Board of Education met in open session for the sole purpose of considering a motion to adjourn to Executive Session per Wisconsin Statute for the purpose of

a. Student Expulsions, 19.85(1)(f) and 120.13(1)(c)4.d. Ms. Handrow moved, Pastor Hargrove seconded, to adjourn to Executive Session. All were in favor. Mrs. McKenna objected to Mr. Eperjesy being present during the Executive Session.

1. Student Expulsions Pastor Hargrove moved, Ms. Handrow seconded, to approve the student expulsion as presented. All were in favor except for Julie L. McKenna.

Ms. Handrow moved, Mr. Nielsen seconded, to adjourn the Executive Session. Hearing no objections, the Executive Session was adjourned at 5:58 p.m. Signed: ____________________________ Gretchen L. Warner, Clerk Signed: ____________________________ Ann Laing, Secretary

Board of Education





A special meeting of the Board of Education of the Racine Unified School District of Racine County, Wisconsin, was called to order at 6 p.m. on Monday, November 26, 2012, with the following members present: Pamala Handrow, Melvin Hargrove (Arrived at 6:07 p.m.), Susan F. Kutz, Julie L. McKenna, Don J. Nielsen, Kim Plache, Gretchen L. Warner (Arrived at 6:16 p.m.), Dennis Wiser. Also present: Ann Laing, Superintendent of Schools; Dan Thielen, Interim Director, Human Resources; and Darlene Gallup, Recording Secretary.

3. Adoption of Procedures for Interviewing and Selecting Board Candidates Mr. Wiser explained the candidate screening process. He then opened the floor for possible motions to modify the process. There were no motions made.

4. Interview Board Candidates and Select Candidate to Fill Vacancy The candidates presented themselves to the Board in the following order: Cecilia Anguiano Berenice Beltran Maldonado Christopher J. Eperjesy Mike Frontier Roger Pfost Paul Sloth Damian Valentine Robert Wittke, Jr. Candidates answered questions from Board members and made closing statements. Board members voted on selection of the new member. Votes were as follows: Cecilia Anguiano Berenice Beltran Maldonado – 1 Vote Christopher J. Eperjesy – 5 Votes Mike Frontier Roger Pfost Paul Sloth – 1 Vote Damian Valentine Robert Wittke, Jr. – 1 Vote Mr. Eperjesy was welcomed as the new Racine Unified School District Board of Education member.

Adjourn The meeting adjourned at 7:43 p.m. Signed: ____________________________ Gretchen L. Warner, Clerk Signed: ____________________________ Ann Laing, Secretary

Board of Education



WORK SESSION


Racine, Wisconsin December 3, 2012

A Special Board meeting of the Board of Education of the Racine Unified School District of Racine County, Wisconsin began at 6:01 p.m. on Monday, December 3, 2012, with the following members present: Melvin Hargrove, Julie L. McKenna, Dennis Wiser, Susan F. Kutz, Pamala Handrow, Don J. Nielsen. Also present: Ann Laing, Superintendent of Schools; Kathy Irish, Director, Finance-Controller; Marc Duff, Director, Finance-Budget; Darlene Gallup, Executive Assistant. The purpose of the meeting was a work session. No action was taken by the Board.

1. Coherent Governance Policy OE-6 (Financial Administration – External) Mr. Wiser said there is a lot of process in this report which needs additional review and clarification. It was the board’s consensus to have the report presented at the December 17, 2012, board meeting and, if necessary, send this report back for an additional work session. Mrs. Irish left the meeting.

2. Realigning the District

Dr. Laing provided an overview of the “Exploration of Budget Solutions Committee Report.” Dr. Laing said the report is not fully completed. Dr. Laing is asking the board to provide comment on its format and input on any additions, changes, or recommendations needed. Major points of her presentation included: • Committee Process • Committee Members • Four-Year-Old Kindergarten • Elementary Schools • Middle Schools • High Schools • Rubric/Right-Sizing Criteria • School Boundaries

Board of Education

• Innovation Proposals (Including: Initiating STEAM and STEM Proposals, Expansion of IB Programming, Initiation of Business Education New Century program classes)

• Recommendations (Page 14-15) o Closure of Wind Point Elementary School at the end of the 2012-2013 school

year o Boundary adjustments (fill to capacity: Dr. Jones, Goodland, Julian Thomas,

North Park, Olympia Brown, Roosevelt, Schulte, West Ridge) o Innovations (STEM and STEAM)

• Addendum Items (Including Exploration of Budget Solutions 2012)

Mr. Duff provided some budget impact information. He noted this will result in a reduction in the base but will not greatly affect the structural deficit.

Dr. Laing said the complete report will be presented to the board in two weeks and the final recommendations will then be formulated. She asked that any additional input be provided to her as soon as possible.

Board recommendations and requests for the report: • Insure accuracy of empty seat numbers • Include information about population projections and how enrollment will be affected • Include information in the report on operational savings

Mr. Wiser said the report is very well organized and appropriately condensed.

Mr. Nielsen moved, Pastor Hargrove seconded, to adjourn the session. With no objections heard, the session adjourned at 6:46 p.m.


BOARD OF EDUCATION AUDIT COMMITTEE

MINUTES October 8, 2012 The Board of Education Audit Committee meeting of Monday, October 8, 2012, was called to order at 5:31 p.m. Approval of Audit Committee Minutes of July 9, 2012 Ms. Handrow moved, Mr. Nielsen seconded, to approve the minutes of the July 9, 2012, Audit Committee meeting. All were in favor. Monthly Financial Update Mr. Hazen provided information regarding the monthly financial update. This information will be shared with the full Board at the October 15, 2012, Board meeting. Information about trends, adjustments and forecasts were shared with the Committee and handouts discussed included: - General Fund Combined Statement of Revenues, Expenditures and Changes Fund Balance Revenues by Source,

Expenditures by Function Monthly Budget - Special Education Fund Combined Statement of Revenues, Expenditures and Changes Fund Balance Revenues by Source,

Expenditures by Function Monthly Budget - Food Service Fund Combined Statement of Revenues, Expenditures and Changes Fund Balance Revenues by Source,

Expenditures by Function Monthly Budget - All Government Funds Combined Statement of Revenues, Expenditures and Changes Fund Balance Revenues by Source,

Expenditures by Function Monthly Budget - Monthly Energy Consumption & Cost Comparison - Employee Benefit Trust Fund Combined Statement of Revenues, Expenditures and Changes Fund Balance Revenues by

Source, Expenditures by Object Monthly Budget - Balance Sheet for Fiscal Year 2012 for Period Ending June 30, 2012 - Summary Analysis of Monthly Reports (Medical) Mr. Hazen noted two new food service trucks are being purchased and an additional truck driver is being hired. With the additional service runs for the breakfast program, the new trucks and driver are needed. School Financials Report Mr. Hazen said the handout provided shows which schools have provided information to Kathy Irish and which are pending. 2012-13 Budget Mr. Hazen said the personnel budget is completed; vacancies and anticipated staff changes are being included in the budget this and next week to assist with the forecast. Additional items discussed included:

• A nation-wide issue of speech pathologist shortage • Voucher and enrollment information • Focus and Priority Schools budget impacts

Other Concerns No other concerns were discussed. Adjourn Ms. Handrow moved, Mr. Nielsen seconded, to adjourn the meeting. With no objection heard, the meeting was adjourned at 6:05 p.m. Others Present: Respectfully submitted, David Hazen, Chief Financial Officer Don J. Nielsen, Chair (Present) Ann Laing, Superintendent of Schools Pamala Handrow (Present) Darlene Gallup, Executive Assistant William S. Van Atta (Absent) Dennis Wiser, Ex Officio (Not Present)

Board of Education


BOARD OF EDUCATION GOVERNANCE COMMITTEE

April 24, 2012 5:30 p.m.

ASC Franklin Room

MINUTES

1. Call to Order The Racine Unified School District Board of Education Governance Committee meeting of Tuesday, April 24, 2012,

was called to order at 5:37 p.m. 2. Approval of Governance Committee Minutes of the February 1, 2012

Mr. Wiser moved, Dr. Warner seconded, to recommend the Board approve the Governance Committee meeting minutes of February 1, 2012. All were in favor.

3. Building Signage-Concealed Weapon Disclaimer Language

Mr. Wiser moved, Ms. Plache seconded to submit the sign options to Gib Berthelsen, Legal Counsel. If approved, then they would be presented directly to the Board for approval. All were in favor.

4. Review and Adopt the District and Board of Education Operations Handbook Revisions Recommendations included:

• Delete “Board Candidates” from title and share the books with the City Council, County Supervisors, Village Officials and all elected officials serving the RUSD district.

Ms. Plache moved, Dr. Warner seconded to recommend Board approval of the revised Board Operations Handbook. All were in favor.

5. Discussion on Whether to Schedule Additional SIP Presentations SIPs should continue as Board Development items with one or two schools presenting at each Board meeting for 15 minutes providing high level executive summaries of their SIPs.

6. Discuss Commonalties Between Board Policies, Monitoring Reports and District Initiatives

Mr. Hejnal provided a handout of a document, “Coherent Governance and Student Learning,” and it was discussed. The consensus of those present was to place this in the Board Handbook and distribute throughout the District.

7. Determine Need for Work Session with Aspen Group on May 22 and Develop Related Agenda

A Work Session with Aspen Group will be scheduled for Tuesday, May 22, 2012, from 1 -5 p.m. The agenda will be as follows: Debrief of work session with administrative session; discuss monitoring report content to ensure consistent monitoring.

8. Set Next Meeting Date and Agenda The Committee did not set meeting date.

9. Public Comments - None

10. Adjourn Mr. Wiser moved, Ms. Plache seconded, to adjourn at 6:15 p.m. All were in favor.

Also present: Respectfully submitted: Ann Laing, Superintendent of Schools Steve Hejnal, Executive Director, Human Resources Melvin Hargrove, Chair, (Present) Susan F. Kutz (Present) Kim Plache (Present) Gretchen L. Warner (Present) Dennis Wiser (Present) William S. Van Atta, Ex-Officio (Not Present)

Board of Education


BOARD OF EDUCATION

GOVERNANCE COMMITTEE October 15, 2012

5:30 p.m. ASC Franklin Room

MINUTES

1. Call to Order The Racine Unified School District Board of Education Governance Committee meeting of October

15, 2012, was called to order at 5:45 p.m. 2. Selection of Committee Chairperson

Mrs. Kutz nominated Kim Plache for chairperson of the Governance Committee. All were in favor and Ms. Plache accepted the chairperson positon.

3. Approval of Governance Committee Minutes of April 24, 2012

This item was postponed to the next Governance Committee meeting. 4. Set Next Meeting Date and Agenda

No meeting date was set.

5. Public Comments There were no public comments made.

6. Adjourn The meeting adjourned at 5:49 p.m. All were in favor.

Also present: Respectfully submitted: Ann Laing, Superintendent of Schools Darlene Gallup, Executive Assistant Kim Plache, Chair (Present) Melvin Hargrove, (Present) Susan F. Kutz (Present) Gretchen L. Warner (Present) Dennis Wiser, Ex-Officio (Present)

Board of Education

Racine Unified School District 2220 Northwestern Avenue, Racine, Wisconsin 53404-2597

Board of Education Committees and Assignments (2012-2013)

Audit Committee Don J. Nielsen, Chair Pamala Handrow Christopher J. Eperjesy Dennis Wiser, Ex Officio

Communications Committee Julie L McKenna, Chair Melvin Hargrove Don J. Nielsen Kim Plache Dennis Wiser, Ex Officio

Grievance & Negotiation Committees Melvin Hargrove, Chair Pamala Handrow Julie L. McKenna Don J. Nielsen Dennis Wiser, Ex Officio Legislative Committee Pamala Handrow, Chair Melvin Hargrove Don J. Nielsen Kim Plache Gretchen L. Warner Dennis Wiser, Ex Officio Policy Governance Committee Kim Plache, Chair Melvin Hargrove Sue F. Kutz Gretchen L. Warner Dennis Wiser, Ex Officio

Superintendent Search Committee Susan F. Kutz, Chair Pamala Handrow Melvin Hargrove Kim Plache Gretchen L. Warner Dennis Wiser, Ex Officio CESA #1 Representative TBD DWSIC Representative Dennis Wiser Julie L. McKenna Guiding Coalition Representatives Pamala Handrow Dennis Wiser

Parks & Rec. Representative Pamala Handrow Racine Interfaith Coalition Julie L. McKenna WASB Delegate Julie L. McKenna

Board of Education

Receive and File

Racine Unified School District

Board of Education

December 17, 2012

Pupil Services Agenda Item: Tabulation of Reported Incidents by Students to Staff Presenting: Alyson Eisch, Director Pupil Services Description: During the time period November 1 through November 30, 2012 there

were 11 total reported incidents. There were 7 incidents reported at the elementary level, 2 at the middle school level, and 2 at the senior high level.

During the time period November 1, through November 30, 2011, there

were 25 total reported incidents. There were 16 incidents reported at the elementary level, 5 at the middle school level, and 4 at the senior high level.

Of the total number of incidents this month 45% involved special

education students. These 18 special education students represent .0013% of the total special education population. Regular education students were involved in 55% of the incidents reported. These 1 regular education students represent .0004% of the total regular education population.

The total number of incidents to date for the 2012-2013 school year is 57

(2011-2012 school year is 130).

Recommendation: Approval of the incidents report as presented. Action Taken:

Tabulation of Reported Incidents by Students to Staff2012-2013 School Year

November, 2012

Victim Race Grade Level of Offending Student4K K 1 2 3 4 5 6 7 8 9 10 11 12

11/01/12to 11/30/12 To

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Elementary 7 5 2 1 5 1 1 1 5Middle 2 1 1 1 1 2High 2 2 2 1 1Total 11 7 1 3 0 0 0 0 2 8 1 0 0 0 1 0 1 5 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 1 1 0 0 0 0Previous Total 46 17 0 19 8 1 0 14 20 11 2 1 0 11 7 1 0 2 0 4 3 2 2 3 2 0 3 0 1 1 1 0 0 0 1 0 1 0 0 Total to Date 57 24 1 22 8 1 0 14 22 19 3 1 0 11 8 1 1 7 0 4 3 2 2 3 2 0 5 0 1 1 1 0 0 1 2 0 1 0 0

Tabulation of Reported Incidents by Student to Staff2012-2013 School Year

November 2012

School Date of

Incident Initials TchrSubTchr Aide

SubAide Admin Secy Other Grade Spl. Ed.

Gifford Elementary 11/09/12 SK 1 K A/SLNorth Park Elementary 11/07/12 TS 1 2 -North Park Elementary 11/16/12 JK 1 2 -North Park Elementary 11/30/12 BH 1 2 -Julian Thomas Elementary 11/27/12 KO 1 2 -Julian Thomas Elementary 11/06/12 KH 1 1 EBDJulian Thomas Elementary 11/02/12 BS 1 2 -Jerstad Middle 11/29/12 SK 1 6 EBD/OHIMitchell Middle 11/13/12 MB 1 6 A/SLHorlick High 11/06/12 SZ 1 10 -Horlick High 11/09/12 AG 1 10 A/SLTotals 7 1 3 0 0 0 0

Superintendent Consent Agenda

Schedule of Personnel Changes


December 17, 2012

Name

Emp.

Group From Assignment

From

FTE New Assignment

To

FTE Effective

NEW (Existing Authorized Position(s))

D'Alie, Britani A from Secretary ASC-School Data Systems Specialist 100% 11/5/12

Pischke, Adam B Julian Thomas-Custodian 47% 12/3/12

Carroll, Brodereck E Mitchell MS-Sp.Ed. CAS Matron 93% 11/26/12

Gamble, Avis E J-A ES-Title I Assistant 50% 1/3/13

Gillentine, Christopher E Johnson-Lunchroom/Recess Assistant 33% 11/29/12

Gonzales, Amy E Wadewitz-Sp.Ed. CAS Matron 90% 12/3/12

McNeil, Karen E Wadewitz-Sp.Ed. CAS Matron 90% 11/12/12

Russo, Antonio E Wadewitz-Sp.Ed. CAS Matron 90% 12/4/12

Yowell, Patricia E Red Apple-Sp.Ed. CAS Assistant 90% 12/20/12

Randles, Lauralyn T District Wide-Visually Impaired Teacher 100% 11/14/12

TERMINATION(S)

Hernandez, Mariana E from Leave of Absence 11/12/12

Lipari, Mary Jo E from Leave of Absence 11/28/12

RESIGNATION(S)

Brinkman, Steven B Giese-2nd Shift Engineer 100% 1/2/13

Olley, Gregory B from Leave of Absence 12/31/12

D'Alie, Britani C ASC-Secretary to Info Systems 100% To Administrator 11/2/12

Monson, Susan T Janes-Instrumental Music 20% 12/7/12

Robinett, Monika T Gilmore-Speech Pathologist 100% 12/7/12

EARLY RETIREMENT(S)

Duda, Marilyn E Wadewitz-Physical Therapy Assistant 100% 1/25/13

Burns, Carol T Mitchell ES-Title I Math 100% 12/22/12

Carlson, Paul T Park-English 100% 3/2/13

Clemens-Tarczon, Elizabeth T Park-Sp.Ed. ED 100% 6/12/12

Covelli, Tina T Mitchell MS-English 100% 6/12/13

Hansen, Carl T Itinerant-Adaptive Physical Ed. 100% 1/25/13

Pruessing, Barbara T Starbuck-Grade 6 100% 12/6/12

Rutkowski, Thomas T Walden-English 100% 6/12/13

REQUEST(S) FOR LEAVE OF ABSENCE

Madala, Tracie B West Ridge/Schulte-Custodian 100% Medical 11/20/12

Olley, Gregory B Building Service-Warehouse Truck Driver 100% Personal 11/16/12

Walker, Dennis B Building Service-Painter Foreman 100% Medical 9/20/12

Carlson, Paul T Park-English 100% Personal 1/28/13

Johnson, Jocelyn T Park-Art Specialist 100% Medical 4/17/12

FTE CHANGES

Fornal, Michelle C Red Apple-Title I Program Secretary 45% Red Apple-Title I Program Secretary 60% 10/29/12

Sikora, Jill E Wadewitz-Sp.Ed. CAS Matron 90% Gifford-Sp.Ed. CAS Matron 100% 11/19/12

Stark, Denise E Horlick-Sp.Ed. CAS Assistant 80% Horlick-Sp.Ed. CAS Assistant 97% 11/26/12

Employment Group Key

A=Administrator

T=Teacher

E=Educational Assistant

B=Building Services

C=Clerical Page 1


Operations AGENDA ITEM: November 2012 Financial Statements


DESCRIPTION: Board policy OE-6.9 requires that annual and monthly financial updates be provided to the board. These statements provide the status of revenues and expenditures for the general fund and all funds combined. The statements also allow a comparison to the board approved budget.

HIGHLIGHTS: The November 2012 financial reports for revenues show RUSD recorded as receivable property tax revenue, state equalization aid, and other state categorical aids the district will receive throughout the year. The district also received $1.76 million in state special education aid, $1,690,513 in federal EdJobs revenue, and $124,038 in federal E-Rate funds. The expenses for November largely represent normal expenses for salaries, benefits, supplies and utilities. The business and operations area includes $590,000 in payments to Durham for regular and special education transportation services.

RECOMMENDATION: Recommend the acceptance of the monthly financial statements.

ACTION TAKEN:

2012 - 2013 Nov MTD Nov YTD

Balance Enc/Com Actual ActualBudget 2

1:52 pm

11-Dec-12

%Exp 2011 - 2012

Nov YTD

MONTHLY BUDGET

Revenues by Source, Expenditures by Function

Combined Statement of Revenues, Expenditures and Changes Fund Balance

All Governmental Funds

Revenues by source

Property taxes 84,375,032 84,375,032 0 0 100.00 81,570,57884,375,032

Local sources 62,704 978,019 0 (2,266,466) 30.14 1,297,1933,244,485

Intermediate sources 0 0 0 (101,600) 0.00 0101,600

State sources 114,609,868 131,979,495 0 (9,783,475) 93.10 133,459,843141,762,970

Federal sources 2,603,705 3,707,094 0 (25,456,873) 12.71 3,875,67729,163,966

Other sources 1,635 4,683 0 (944,499) 0.49 1,283,706949,182

Total revenues 259,597,235 201,652,944 221,044,323 0 (38,552,912) 221,486,997 85.15

Expenditures by function

Instruction

Regular instruction 92,953,975 11,094,225 26,863,934 138,945 65,951,096 29.05 24,285,792

Vocational instruction 4,780,456 604,799 1,336,651 22,027 3,421,778 28.42 1,160,205

Special instruction 40,438,539 5,296,159 11,239,079 4,051 29,195,409 27.80 9,444,966

Other instruction 6,860,254 1,048,586 2,013,466 83,224 4,930,012 30.56 1,650,773

Total instruction 145,033,224 18,043,769 41,453,129 248,247 103,331,847 28.75 36,541,737

Support service

Pupil services 14,911,171 1,837,672 4,213,600 6,236 10,691,335 28.30 3,509,079

Libraries & instructional support 15,302,233 1,434,668 4,785,372 56,045 10,460,816 31.64 4,170,340

General administration 2,347,210 151,065 948,471 13,816 1,384,923 41.00 994,802

Building administration 11,279,486 958,157 4,335,506 15,445 6,928,535 38.57 4,278,918

Business & operations 59,308,298 5,153,359 14,359,323 1,918,832 43,030,143 27.45 18,915,763

Central services 6,898,850 583,560 2,843,857 165,003 3,889,990 43.61 2,441,600

Insurance 964,495 23,085 487,708 0 476,787 50.57 555,987

Debt payments 39,757,961 0 1,322,473 448,136 37,987,352 4.45 9,339,631

Other support services 750,921 25,937 543,191 32,551 175,180 76.67 166,302

Food service 8,062,987 1,650,701 2,128,516 36,424 5,898,046 26.85 2,171,442

Community service 1,182,542 199,088 641,154 39,401 501,987 57.55 462,841

Total support services 160,766,154 12,017,293 36,609,170 2,731,890 121,425,093 24.47 47,006,704

Non-Program transactions 8,747,240 308,851 506,793 96,825 8,143,622 6.90 520,867

Total expenditures 314,546,618 30,369,913 78,569,092 3,076,963 232,900,563 25.96 84,069,308

Excess (deficiency) of revenues over

expenditures(54,949,383) 171,283,031 142,475,231 (3,076,963) (129,568,716) 137,417,689

Other financing sources (uses)

Transfer from other funds 34,725,964 0 0 0 34,725,964 0.00 0

Other financing sources 69,529,625 0 1,193 0 69,528,432 0.00 7,558,264

Transfer to other funds (34,725,964) 0 (1) 0 (34,725,963) 0.00 0

Total other financing

sources (uses) 69,529,625 7,558,264 0.00 69,528,433 0 1,192 0

Net change in fund balance 14,580,242 142,476,423 144,975,953

38,565,754Fund balance beginning of year 38,565,754

Fund balance end of year 53,145,996 181,042,177

2012 - 2013 Nov MTD Nov YTD

Balance Enc/Com Actual ActualBudget 2

1:39 pm

11-Dec-12

%Exp 2011 - 2012

Nov YTD

MONTHLY BUDGET

Revenues by Source, Expenditures by Function

Combined Statement of Revenues, Expenditures and Changes Fund Balance

General Fund

Revenues by source

Property taxes 79,178,293 79,178,293 0 0 100.00 76,722,00379,178,293

Local sources 41,345 345,150 0 (702,878) 32.93 372,7501,048,028

Intermediate sources 0 0 0 (101,600) 0.00 0101,600

State sources 112,848,146 130,217,773 0 635,879 100.49 131,573,501129,581,894

Federal sources 1,814,552 1,817,052 0 (13,118,473) 12.17 674,74114,935,524

Other sources 1,635 4,683 0 (944,499) 0.49 1,283,706949,182

Total revenues 225,794,521 193,883,971 211,562,951 0 (14,231,570) 210,626,701 93.70

Expenditures by function

Instruction

Regular instruction 92,938,241 11,071,771 26,820,715 138,945 65,978,581 29.01 24,131,509

Vocational instruction 4,727,013 601,785 1,333,519 22,027 3,371,467 28.68 1,157,313

Special instruction 188,919 57,592 59,353 625 128,941 31.75 6,067

Other instruction 6,353,115 969,659 1,877,211 13,685 4,489,589 29.76 1,637,566

Total instruction 104,207,288 12,700,806 30,090,798 175,282 73,941,208 29.04 26,932,455

Support service

Pupil services 9,311,036 1,147,881 2,694,254 6,151 6,610,630 29.00 2,236,183

Libraries & instructional support 11,461,301 1,113,980 3,231,071 54,426 8,175,804 28.67 2,857,558

General administration 2,238,422 145,114 942,348 8,091 1,287,982 42.46 973,867

Building administration 11,185,753 932,450 4,288,871 15,319 6,881,563 38.48 4,243,064

Business & operations 36,446,123 3,224,105 11,885,111 1,894,085 22,666,927 37.81 13,228,873

Central services 6,834,394 575,734 2,826,946 163,903 3,843,545 43.76 2,397,026

Insurance 740,755 23,085 487,708 0 253,047 65.84 555,987

Debt payments 1,343,657 0 794,700 448,136 100,821 92.50 2,852,138

Other support services 750,921 8,865 543,191 0 207,730 72.34 166,302

Total support services 80,312,362 7,171,213 27,694,201 2,590,113 50,028,049 37.71 29,510,998

Non-Program transactions 8,463,640 323,077 436,616 96,825 7,930,199 6.30 448,244

Total expenditures 192,983,290 20,195,096 58,221,614 2,862,220 131,899,456 31.65 56,891,697

Excess (deficiency) of revenues over

expenditures 32,811,231 173,688,875 153,341,337 (2,862,220) (146,131,026) 153,735,004

Other financing sources (uses)

Transfer from other funds 192,554 0 0 0 192,554 0.00 0

Other financing sources 1,529,625 0 1,193 0 1,528,432 0.08 0

Transfer to other funds (34,533,410) 0 (1) 0 (34,533,409) 0.00 0

Total other financing

sources (uses) (32,811,231) 0 0.00 (32,812,423) 0 1,192 0

Net change in fund balance 0 153,342,529 153,735,004

33,118,439Fund balance beginning of year 33,118,439

Fund balance end of year 33,118,440 186,460,968

Please approve the following disbursements for November 1-30, 2012

Beginning EndingAccount Check Number Check Number Amount

General Fund 70203 71372 15,973,789.21 Payroll -‐ Direct Deposit 97857793 97864538 8,386,501.35 Payroll -‐ Non-‐Direct Deposit 97871527 97873537 1,713,762.89 Social Security and Medicare 1,174,941.27 WRS 1,206,646.68 Debt repayment

Total Disbursements 28,455,641.40

Please approve the following receipts for November 1-30, 2012

Account AmountGeneral Fund 16,762,581.07 Debt Borrowing/Investments

Total Receipts 16,762,581.07

Detailed reports are available for review at the School District offices in the Business Services area.All disbursements and receipts noted above are within the limitations described in Board PolicyExecutive Limitation -‐ 6 and legally delegated to the administration through the Chief Executive Officeror his/her delegate.

Racine Unified School District Board of Education December 17, 2012

Office of Elementary Education Office of Secondary Education

AGENDA ITEM: Overnight Field Trips PRESENTING: Jeff Weiss, Assistant Superintendent-Elementary Ed. Bethel E. Cager, Assistant Superintendent-Secondary Ed. DESCRIPTION: See attached database. FISCAL NOTE: See attached database. RECOMMENDATION: Approval of the Overnight Field trips as listed. ACTION TAKEN:

Overnight Field Trips for 12/17/12 BOE Mtg.

School Teacher Student Group Destination Dates LodgingMale Female Male Female Male Female

1 Park HS T. Stapleman Skills USAWisconsin Dells, WI

4/10/13-4/11/13

Chula Vista Resort 20 0 1* 0 0 0

2 Horlick HS T. Ingram Skills USAWisconsin Dells, WI

4/10/13-4/11/13

Chula Vista Resort 25 15 2* 0 1 2

3 Case HS S. Kudela Skills USAWisconsin Dells, WI

4/10/13-4/11/13

Chula Vista Resort 13 2 1 1 0 0

4 Park HS S. Sanchez HOSAWisconsin Dells, WI 4/7/13-4/9/13

Chula Vista Resort 4 20 0 2 1 0

5 Gilmore MS S. Barbee Gr. 8 students

Springfield, IL / St. Louis, MO

4/18/13-4/21/13

Comfort Suites, Springfield 20 20 2 2 0 0

6 Park HS M MrkvickaVarsity Pom Pon Squad

Bloomington, MN 1/4/13-1/6/13

Embassy Suites 0 29 0 1 0 4

7 Schulte H. Larson Gr. 3East Troy, WI

5/23/13-5/24/13

Camp Timber-Lee 40 20 1 4 8 6

8 Case HS S. Kudela Tech EdMenomonee, WI

2/28/13-3/1/13 AmericInn 13 2 2 0 0 1

9 Park HS P. LeslieSwim & Dive Team Neenah, WI 1/4/13-1/5/13 local hotel 3 0 1 0 0 0

10 Case HS P. BerryVarsity Girls Golf

Appleton, WI

9/20/13-9/21/13

Holiday Inn Select 0 6 1 0 1 2

11 Park HS T. Stapleman Skills USAMenomonee, WI

2/28/13-3/1/13 AmericInn 20 0 2 0 0 1

12 Case HS M. Steger

Spanish Medical Interpretation Class

Jutiapa, Guatemala, Central America

2/10/13-2/17/13

Word of Life Camp 0 4 0 1 0 0

13 Horlick HS D. Popp Model UN Chicago, IL2/7/13-2/10/13

Hampton Inn Majestic 15 11 1 1 0 0

# of Students # of Staff # of Non-Staff

*Sharing chaperones with Horlick to meet ratio.

Overnight Field Trips for 12/17/12 BOE Mtg.

Event Multi-Gender No. of Days District Student Cost Annual

Chaperones yes/no Subs Lost Cost*

(Before fund raising) Trip

1 n/a 1 2 $250.00 $150.00 yes

2 n/a 2 2 $500.00 $150.00 yes

3 n/a 2 2 $500.00 $150.00 yes

4 n/a 2 2 $500.00 $150.00 yes

5 n/a 3 2 $750.00 $400.00 yes

6 n/a 1 1 $125.00 $100.00 yes

7 n/a 2 2 $500.00 $100.00 yes

8 n/a 2 2 $500.00 $33.00 yes

9 n/a 0 0 $0.00 $0.00 yes

10 n/a 0 0 $0.00 $0.00 yes

11 n/a 2 2 $500.00 $150.00 yes

12 n/a 1 5 $625.00 $1,600.00 no

13 n/a 2 2 $500.00 $200.00 yes$5,250.00

Objective/Purpose

State competition.

National Model UN Conference, where students practice speeches and passing resolutions much like the United Nations.

Immersion in Culture & Spanish. Opportunity to work with medical staff & translate due to students' interest in medical fields. Also, excellent opportunity for volunteer hours (NHS, etc.).

Pom Pon Clinic at Mall of America.

Outdoor education.

To further skills in content areas.

State competition.

Students compete in skills & leadership events connecting what they learn in the classroom to college & business demands.

State competition.

State competition.

The trip follows U.S. History of Abe Lincoln, Civil War, Cahokia Indians Mounds, Dred Scott Case (St. Louis), Illinois State Park system. Students will be able to experience the rich history first hand.

Diving competition.

Varsity Golf tournament.

Board Business Meeting Packet December 17, 2012...Dec 17, 2012 · December’17,2012’ ... • assuring the accuracy and completeness of data entered. In addition, each party agrees

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