District Financial Position Remains Strong

The fiscal year for Iowa public school districts runs from July 1 through June 30. Schools are subsequently required to file a report on the financial status of the school district by September 15th with the Iowa Department of Education, this report is known as the 'certified annual report'. That data from that report is subsequently used to take stock of several financial ratios is the district in order to gauge overall district health. 

The table to the right are nine of the key financial metrics that are used to determine overall financial health in our school district. This data can tell us, over time how the district is performing and can serve as a 'canary in the coal mine', serving as a tool for the district in the event a change in course is needed. The color coding is important as a quick reference point: green is indicative of a healthy metric, yellow would be one where extra attention is needed, and red of course would be an area of concern. The district last had a red metric in 2012, and multiple red metrics in 2010 and 2011 (not depicted in the figure shown). While I'll take a few minutes to highlight a couple of these metrics and what specifically they mean for us, first I would like to make a couple of high level observations. Additionally, if you are interested in viewing the entire report, please visit the 'About Us' page of our website. About halfway down the page you will be able to find a whole host of financial information about the district including budget documents, audit reports, and outstanding levy limits.

To begin, overall, the District’s financial position is excellent. Metrics remained stable from FY 2022 to FY 2023. There are no significant areas of concern with regard to district finances. 

Some general observations would include first and foremost the fact our general fund revenue increased by $506,128 or 5.4% from FY 2022 to FY 2023. Most notably, this increase came in the local sources object code and can be attributed to growth in open enrollment, and in federal sources related specifically to the ESSER funds. ESSER funds were supplemental monies designed to be used for COVID relief. At this point, all of these federal funds have been expended. At the same time, the district’s cash reserves are full and it remains unnecessary to levy for cash reserves. Finally, our general fund expenditures increased by $641,042 or a rate of 6.9%. This increase does not include a transfer of $318,272 from our capital projects fund to our general fund. This was an accounting requirement attributable to the expenditure of our ESSER funds. The rate of general fund expenditure growth is due to hiring additional personnel related to enrollment increases.

The total general fund balance decreased from $2,517,362 in FY 2022 to $2,223,561 in FY 2023. At the same time, the restricted fund balance increased from $288,159 to $318,967. The district was able to clear some of these restricted funds by moving them to the district’s ‘flex’ account. We should anticipate the restricted fund balance will continue to decrease in the coming years, by design, as more restricted resources have been allocated to the TAG program. Because of changes to district policy and spending practice, it is more likely than not that all of these restricted funds will begin to be expended on an annual basis. As a reminder, these funds are reserved because they can only be used for specific purposes under Iowa Law. 

Even though the general fund balance decreased, it is important to note that the solvency ratio, which also decreased; is still at 19.21%. Financial solvency is the measure of the district's cash position, and generally speaking a long term target for solvency ratio is at least 10%. Solvency is important since it allows district operations to continue absent any inflow of revenue. Public school districts generally do no receive any revenue over the summer and need to rely on the general fund balance for operational expenses until revenue begins to flow again in September. There is an approximate 90 day gap between the ending and beginning of revenue in a fiscal year. Our calculations suggest the district could maintain operations for 99 days without the infusion of cash. 

Tax rates for the FY 2023 budget year were 13.31578, down from 14.09778 in FY 2022. Overall taxes were down for the district as well, in spite of the continued increase in the residential rollback and natural increases to taxable valuation district wide. 

The district currently carries a long-term debt note of $5,140,000 when it sold revenue bonds during the winter of 2019, and a general obligation debt note of $9,250,000 that was sold in the spring of 2023. At the same time, the district carries short term debt primarily for the lease of computer devices that support the district’s connected learning initiative. These notes are paid through the capital funds improvement funding stream and are not therefore general fund expenditures. Voters approved a general obligation bond in September of 2022 of $11.65 million that will impact tax rates in FY 24.

In my view, there is no metric more important that the district's unspent balance. This metric should not be confused with cash position, because it most certainly is not a representation of cash on hand. It is instead a measure of capacity; a legal designation that simply gives the district the authority to expend, and to generate the revenue [that creates the capacity] needed to expend those funds. Of all the financial health indicators, this is the one that is closely monitored, projected, and anticipated annually. The importance of this  metric cannot be understated: it is illegal to have a negative unspent balance in Iowa and a persistent negative unspent balance can, and has forced school consolidation, a district going into receivership with the state, and ultimately lead to closure. The news here is good, with an increase in this ratio every year since 2011 when the district completed major budget cuts and ended with a balance of $90,971 or 1.29%. In the prevailing years it has grown steadily to $4,659,569 or 31.34% in fiscal year 2023. Like the financial solvency ratio, this puts the district in a good position in light of unpredictable funding from the state.

 

It's Not Where You Start, but Where You End!

Ironically, the last part of a school year is spent planning for the next school year and the first part of a new school year is spent looking at the year that just ended! Our end of year financial report will be finalized in a couple of weeks. Enrollment certification will happen around the middle of October. And the embargo on student achievement (or ISASP) results was just lifted. Of all the metrics we look at, understanding how our students perform academically is second to none. It really is the whole ballgame. What percentage of students are proficient? How much growth did thy make from one year to the next? 

Over the course of the next couple of months, I'll be providing a summary of the results of these various reports right here, hopefully in easy to understand snapshots. Keep in mind these will not be all inclusive, or cover every conceivable metric. So, please: if you have questions don't hesitate to reach out. With that we'll begin today with academic performance, but first a disclaimer: While the results of these tests are used in the Iowa Performance Profile, they too are not all inclusive. There are components in that report card that have not yet been analyzed. I'll be sure to let you know once those are released. 

So today we'll focus on some top line numbers from our ISASP testing, which is the statewide test that is administered toward the end of the school year. Parents: you should have received information that will allow you to access your individual child's performance profile. If you haven't received this link please contact your child's building principal for assistance. 

The table depicted below is specific to proficiency and tells only part of our story. Proficiency is determined by a three digit standard score and is the sum of those who score 'proficient' and those who score 'advanced'. If you look at 'Sixth Grade Math' for example, 49% of the students scored proficient and 41% were at the advanced level, for a total of a 90% proficiency number. Indeed a pretty impressive number. Additionally you will note that at each grade level the percentage of Hudson students achieving at the proficient level exceeds the state benchmark with the exception of 3rd grade. 

Our question must be, why? Now, there could be a lot of reasons for this. Part of this is due to COVID. This can be confirmed by looking at the data statewide. Keep in mind this particular class missed the entire quarter of their kindergarten year. It is also these students' first experience with a standardized test. Granted, all third graders in the state had the same baseline of classroom instruction coming in, but one must also remember that each configuration of third graders from around the state enters the 'starting block' from a different place. The 'product' if you will is not uniform. The takeaway then, is not where they start: but where they end. That really is good news. There is a lot of time and if experience is an indicator, this gap will not only close in the coming year, but our track record suggests it will far surpass and exceed the gap. The fact that this is their first experience with the test is not very informative. It merely provides a baseline. In other words, we have no prior measure and can't read a lot into it. All it really is, is the starting point. But, we can draw some hypotheses based on what we know about how our 4th graders performed. 

This years 4th graders had similar results when they were in 3rd grade. Granted, they were not as pronounced but they were statistically notable. How that group has now performed as 4th graders is impressive. In English/Language Art, 85% of students scored in the proficient category. An astonishing 98% of students showed longitudinal growth from one year to the next, and 85% of those students met or exceeded predicted growth. Based on the vertical scale score, ISASP predicts the average 4th grader will increase their score by 23 points. In sum total, our 4th graders grew, on average 37.68 points. Indeed, it is not as important as where you start but by where you end!

The table above is the same snapshot, this time of our secondary students. In every category across all grade levels, note that we beat the state benchmark. In some instances, our district exceeded those benchmarks by a very large margin. In many instances by double digits. 

In addition to the proficiency measures, I think it is worth taking a look at the standard scale comparability and benchmark. You see, as mentioned above proficiency only tells about half the story. If, for example a student is not proficient it will likely take a gain greater than the predicted growth in order to close that gap. Consider the 4th grade as that same example. As 3rd graders, they too were below benchmark, much like the example above. This group exceeded predicted growth by more than 15 points! In other words, they went from 61% proficiency to 85% proficiency over the course of one academic year. 

In this data set you can view how a cohort performs over time by viewing the data diagonally from left to right by year. You can see how that particular group of students performs over time. But, you need to keep in mind a couple of important caveats: as I keep reminding you, proficiency only tells part of the story. It is only when viewed within the context of standard score growth can on draw any real conclusions. And second; these are not 'matched' cohorts. In other words, if a student moves into or out of a district an important growth metric for the grade level writ large is missing. It will be pretty close, but a couple of students in a grade level that averages about 55 students can make a statistical difference. 

Again, you will note that in almost every measurable data point, the scores exceed the statewide benchmark. When superimposed over the predicted growth, it verifies and triangulates our work as a school district. Furthermore in almost every case, the district has outperformed the predicted starting scale score for that grade level. Consider the 11th grade math standard score of 617.8. The mean scale score suggests a starting point of 593, so from the starting point we are 24.8 points above that. On average, student standard scores increased 39.45 against a predicted 25 point gain.

The takeaway is this. Generally speaking, if 80% of our students are in the proficient category, it is indicative of an effective curriculum that is properly aligned to the Core. The very best way we can prepare for the ISASP is to ensure that our curriculum is aligned. For the most part, these results suggest that what we are doing is working. Indeed there are areas where we can improve. That will include an analysis to determine where gaps may continue to be prevalent, and examining the effectiveness of our tier two instructional strategies. 

What we need to keep in mind as educators and consumers of student achievement data, is that student progress is not always linear or predicable. Each student is different and it would be unwise to count on a predictable progression year after year. Take for example 6th grade. By examining the table above, we can predict those students will gain 22 points. On average, that group gained 48.77 points, and handful of those students had triple digit gains. 

Today's column in merely designed to give you a high level summary of our achievement results. To see additional data please click here. At the bottom of the tables on each tab is a link to the data from the year prior for you to draw cohort conclusions. If you have questions about your individual child's performance, please contact the building principal. For more information about district wide analyses, please feel free to reach out to me. And continue to keep this in mind: it matters not where you start, it matters where you end. And our data suggest a very good ending!

Building Character Through Sportsmanship

Right before school started I received a letter from the Iowa High School Athletic Association applauding the fact that we didn't have any ejections during the 2022-2023 school year. Of course we didn't. We receive a similar letter every year and my expectation is that we continue to receive the same letter every year into perpetuity. It really shouldn't be that hard, but the statistics suggest otherwise. Only 46% of schools in Iowa received the letter. Think about that for a second: More than half of Iowa schools had a coach or player ejected last year. That, well that is a disgrace. It's really no wonder why we also received notice that one of our football games was moved from a Friday night to a Thursday night. The reason: referee shortage. It doesn't take too much of a leap to understand why there is a shortage of high school officials. 

Sportsmanship is more than just a set of rules or a code of conduct; it is a reflection of one's character. It encompasses fair play, respect for opponents, and graciousness in victory and defeat. Indeed the primary purpose of sports is competition and winning, but the value of sportsmanship goes well beyond the scoreboard. We may lose the game, but we must never lose our cool. For these reasons, we place great emphasis on the importance of conduct with our coaches and the fact that we are representing our school and community whenever we put those jerseys on. But it is more than the fact that our students are 'wearing the jersey and representing the community'. It is the bedrock of integrity and honesty. Our student athletes who exhibit sportsmanship are more likely to maintain high ethical standards both on and off the field. We instill in them an understanding of the importance of playing by the rules, and understanding the fact that sometimes the call may not go our way. To accept the outcome with grace.  By adhering to these principles, we hope our student athletes develop a strong sense of integrity that extends into adulthood and their everyday lives.

At the same time though, sportsmanship extends beyond the athletes competing on the field of play. Indeed it includes the fans that attend our events. We expect passion and excitement. We encourage our fans to cheer, and to cheer loudly. Yet, sometimes my administrators take grief because:

"You don't let the students cheer". 

That would be a mischaracterization. We do let the students cheer. We just don't let the students jeer. I know, believe me, I know. The opposing fans do it. Yes, you may be right. What does that say about them? Now, when we don't reciprocate, what does that say about you? We want-and encourage all our fans, and particularly our student section to cheer on their Pirates. To do so loudly and boldly. But, we won't tolerate tearing down our opponents or getting into arguments with officials when they get a call wrong. And we all know there are going to be bad calls. That is part of the game and we must always remember the humanness of those we ask to officiate our contests. Believe me, they want to get it right all every single time too!

A key component of sportsmanship is respect. Respect for our opponents, our teammates, coaches, officials, and of course school and community. Fans and athletes who demonstrate respect understand that their competition; their opponent is an essential part of the experience. By acknowledging and respecting the efforts and abilities of our opponents, it fosters healthy competition, mutual growth and creates lifelong skills that will extend well beyond their 'playing years'. 

We may not win every game. In fact, that is of one thing I am certain. But we can always exhibit good sportsmanship. I don't mean to sound cliché, but you have all heard me say this before. 'It's not whether you win or lose, but how you play the game.' I am often most proud when I hear about the character of our people. We recently lost the junior varsity football game at Wapsie Valley. I wasn't at the game but coach received this text message from the whit hat following the game.

Now, the referee did not need to send that message. But I am sure glad he did. In my view, this message encapsulates the whole point of why our activity program exists. In some ways, I think teaching the 'Xs' and the 'Os' are a means to an end. This, this is what we are trying to teach our kids. Sure, we lost the game. But we really won in so many other ways.

Indeed, sportsmanship is a powerful force for character development, teaching athletes and fans valuable life skills like integrity, respect, resilience, and honor. Fostering good sportsmanship requires a collective effort from everyone: athletes, fans, coaches, parents, and administrators. By prioritizing character development alongside athletic skills, and celebrating positive behavior, we can create a sporting environment that is not only competitive but also respectful and enjoyable for all participants. In doing so, we not only build character but also ensure the longevity and success of sports at all levels.

Go Pirates!

Why Hudson?

In my work with new teachers I encourage them to ask questions. I want them to feel comfortable in their new role and to understand that they are surrounded by a vast well of knowledge and expertise. We want them to be successful, perhaps as much as we want the students in our classrooms to be successful. Because we know that their success is tied to their students' success. I recently prompted them with a question of my own: What is one thing that you would like to know about our district? For the most part, their inquiry centered around understanding why we all chose Hudson and what makes it special. What are our values? What is the best part about being in a school in a small community? Today then, I'd like to share my own personal reasons with them.

For me, Hudson parallels my own school experience. I grew up not far from here in a school very similar in size to Hudson. In fact, for a while my alma mater was part of the NICL. Coming to Hudson was familiar to me; akin to 'coming home'. Growing up in a small town has tremendous advantages. We know our neighbors. We watch out for one another. We are fiercely loyal to our community and to our school. So in that regard, I chose Hudson because it resembled my known paradigm. It's like a warm blanket on a cold winter night.

But it goes a bit deeper than that. After graduating from high school, I attended a private Catholic college in Dubuque. From that point forward, over the next 20 years I was immersed in the private school system. My career in private education was very satisfying. It is where I learned to teach and where I first began my journey in administration. The people were wonderful. The reality though, is that system was not indicative of the average Iowan. That system served(s) upper class families with similar backgrounds and belief systems. It was not representative of what most Iowa students experience in their formal education. And while I share that faith tradition, the school system was contextually foreign to my formal educational experience.

I came of age in a small town, Iowa school district that included a cross section of the community where I lived. There were upper class families, middle class families, and families that struggled. Some of us went to the local Catholic church on Sunday, while some may have gone to the Methodist church. Others, well they may not have gone at all. Family dynamics were different. We had two parent families and one parent families. The dissonance wasn't all that important. In spite of those differences, we learned the value of hard work, perseverance, and respect for one another: even when we disagreed. The most important commonality, well that was the community, and the center of that community was the school. If you were looking for something to do, you went to the music concert on Tuesday night and the football game on Friday night. We all wore the same color jersey and were proud to do so. I believe that same dynamic exists here in Hudson. 

Again, to underscore my private school experience: it was rewarding and very satisfying. But it does not emulate the life of the average Iowan. The mission was/is very different. On one hand, we are charged with providing a rich and comprehensive education to all students regardless of their background. Regardless of whether or not they had a meal the previous day, who their parents are, or even what their belief system might be. We are charged with embracing this 'melting pot' of children who bring with them differences as vast as the tapestry of cultures that blanket our community and state; helping them to understand their place in the world. To learn to get along with one another, to understand differing positions and to respect the differences in those around us. In other words, to create 'contributing citizens'. 

All of this, as opposed to a system where those differences are not often acknowledged. Where opportunities to engage in rich dialogue where honest and open debate can flourish: are missed. Our chance to create 'contributing citizens' and to expand on the ideals of a 'more perfect union' take a backseat to a singular value system. During my time in private education I was very clear about our mission and vision for the institution: an indoctrination in the faith. Indeed the language was explicit.

I suppose everyone is proud of where they come from. After all, we all want to believe that we come from someplace special. I certainly believe that about this community. This school district is strengthened by the community. Likewise, I hope and believe the school district enhances and strengthens the community. Our ability to work hand in glove only further cements those bonds. I suppose that is because we all want the same things: a well educated group of students who will one day live in and contribute to our community.