Board Approves 2011-2012 Budget
This fall the Finance Committee, composed of parents (Marian Baldauf, Tomas Aragon, Alicia Fernandez, Barbara Landolt, Margie O’Driscoll, and Sunny Ryan), teachers (Francisco Hernandez and Vahlee Peters), administrators (Cindy Woo and Steve Morris) and an alumni trustee (Francesca Gessner ’90), crafted the budget for the 2011-2012 school year. We worked collaboratively, with family, staff and the future of The San Francisco School in mind, as we honed the plan to secure all that we love about the school in a financially conscientious manner.
At the forefront of our minds were:
- Preserving the high quality of the educational program,
- Keeping our teachers fairly and competitively paid,
- The long-term sustainability of the school, and
- The real impact that the current economy has on our families.
At its January 10th meeting, the Board of Trustees unanimously approved the 2011-2012 budget proposed by the Finance Committee. Tuition will increase 4.9%. Tuition for Preschool and Elementary will be $21,510 with a total dollar increase of $1,000 ($100 per month); tuition for the Middle School will be $23,200 with a total dollar increase of $1,080 ($108 per month). The school’s commitment to the Indexed Tuition program was reaffirmed by keeping the level of tuition dollars funded by the school at 18% of total tuition.
The Process
We begin the budget process by reviewing and considering the following:
- Our tuition relative to other Preschool and K-8 San Francisco independent schools: This review showed that our Elementary tuition is among the lowest in San Francisco, while our Middle School tuition is just below the median.
- Teachers’ salaries relative to our peer institutions: Our goal is to keep faculty and staff salaries in the mid-50th percentile of peer schools. This review showed that we are meeting this goal.
- Strategic Plan Initiatives: Our 2007-2012 Strategic Plan charges our community with providing a physical environment that enhances student learning, accommodates the broader community and reflects the school’s values. With the Board approval of the Community Center Project this fall, we reviewed the long-term financial implications of this endeavor.
- Impact on current families: Balancing the cost of operating the school with the impact of tuition increases is constantly on the minds of the Finance Committee members and the Board, and is something we revisit multiple times during the budgeting process.
We then look at the “status quo” budget. This budget is the cost of running the school from year to year with no program changes. It includes the estimated impact of inflation (+1.1% over the previous year) and teachers’ step salary increases. As it is at most schools, teachers at SFS work on a “step system” where salaries are slightly increased each year based on experience
and professional development. Implementation of a status quo-only budget would have resulted in a tuition increase of 2.80%. The implementation of some (but not all) Strategic Plan Initiatives added an additional 2.1%. These initiatives include funding for a part-time facilities manager, ongoing campus improvements (including the North Preschool renovation), an allocation to the Head’s Initiative Fund, and budgeting for anticipated interest expense associated with the Community Center Project. The Head’s Initiative Fund allows for program enhancements to be determined in collaboration with the administration and faculty input.
Looking Forward
These are exciting times at The San Francisco School as we look forward to a time of responsible growth and expansion of our facilities. While the Board and the Finance Committee will continue to explore ways that we can control costs, limit increases in tuition and maintain our ongoing commitment to having a full range of economic diversity at the school, it is also imperative that we continue to maintain and further improve all that we love about the school.
The San Francisco School is one of the most diverse independent schools in the Bay Area. That diversity includes socio-economic factors. Our shared respect for all members of the school’s community – students, parents and guardians, teachers and staff – is one of the central reasons we are here together. For those in the community who are able, we ask for your continued strong financial support of the Annual Fund and the Endowment. Please make the school your first giving priority, so that we can ensure that the school not only maintains its excellent program, but also grows and strengthens in the coming years.
For those who are concerned with their ability to afford tuition or if there are questions about the budget process, we encourage you to talk with Cindy Woo and/or Steve Morris.
We would like to acknowledge the hard work and dedication of Cindy Woo, Director of Finance and Operations, who is in her first year in this role. Lastly, thank you to the Finance Committee for all their hard work on this budget.
Marian Baldauf Steve Morris
Treasurer and Chair of the Finance Committee Head of School |
