Transition Team Minutes October 21, 2015
Allison Atteberry with the University of Colorado, Boulder presented the Colorado Assessment Design Research and Evaluation (CADRE) ProComp 2 year evaluation, (see attached).
The Transition Team members Henry Roman, DCTA Liaison and Bart Mueller, Managing Labor Director posed the question on if certain factors such as the senate bill 191 or PERA legislation or policy changes have any impact on the retention statistics
The CADRE labor trend for DPS was in line with neighboring district teacher retention
CADRE analysis suggests that ProComp is not causing an increase in retention, there is no correlation it impacts a decrease in retention
The CADRE analysis indicated there was a retention decrease in turnaround schools. Erik Johnson, Director of Finance, noted that the turnaround rules had changed and theteam suggested that CADRE should compare schools prior to turnaround status and same schools during turnaround phase. Bart Mueller, Managing Labor Director suggested that retention data is impacted by termination of teachers
The Transition Team attended the ProComp Trust Board meeting.
Erik Johnson, Director of Financepresented current and future Procomp budget projections.
Henry Roman, DCTA Liaison asked to have additional clarification on how the FTE for teacher leaders impact the budget projections. He posed the question on if .5 of that should not be included in Procomp projections, projections should be based on actual teacher FTE* only.Henry Roman asked that teacher leaders not be included in the projections and Rob Gould. suggested that more money needs to come from general fund.
ProComp balance has declined, there was more cash shifted to conservative investments, and therefore rate of return is decreasing to 3%.Rob Gould asked if this investment strategy is common with other trusts. Erik Johnsonshared that the 3% return projection is based on prior returns that used less riskier investments/funds.
Erik Johnson shared that administrative fee expenses will remain capped at a flat amount. Henry Roman shared with the team that in order to change the admin expense it must be negotiated.
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Henry R. shared 4200 was original ProComp FTE projection and the model was never adjusted for growth to maintain same level of incentives. ProComp is spending more than what is being collected and the concern was raised that ProComp will run out of funding and the committee needs to look at cut point thresholds.
Mark Ferrandino shared that DPS needs to look at making small adjustments now to sustain long term funding.
Cal asked why salary expense was decreasing in ProComp, Erik Johnson stated that over time the general fund will cover greater share of steps/lanes
Rob Gould would like to see financial projection on salary expense demographic analysis, Erik Johnson to provide*
SGO budget assumption was lowered from original projection
Henry Roman shared concerns on consumer direction given on 401K fees and if there are any conflicts, want to ensure that fees are being monitored, Trust Board member shared that Trust Board reviews the fees in the request for proposal process and on a regular basis.
Mark Ferrandino . shared there will be an RFP (request for proposal) review on vendors and fees will be taken into consideration. RFP is being done for normal due diligence process.
There was a discussion on voter language intent on ProComp trust payment. The question was posed on if the intent was for a balance to build over time and pay at a later time. Rob Gould read mill levy language. Erik Johnson said the language does not reference having an aggregate fund balance. Rob Gould said that the teachers think the aggregate balance should be taken into consideration.
Henry Roman shared that base building incentives have an impact on future balance and suggested the Transition Team should meet with the Trust Board once a year.