Common Cents Shared Services Initiative Results

1
Common Cents Shared Services Initiative Results
Woodland Hills School District

• September 2, 2009

2
Agenda
3
Common Cents Objectives and Goals

• Background Governor Rendells 2007-08 budget
  allocated funds to provide expert advice to
  school districts to learn about ways they can
  share services and programs in order to increase
  the efficient use of tax payer resources and
  improve service delivery for students. Common
  Cents offers these volunteer districts free
  advice and no mandate.
• Project Objective To implement a shared services
  program across Pennsylvanias participating
  school districts as a way to reduce
  administrative costs and allow school districts
  to invest more dollars in the classroom.

4
Year 1 Overview and Results
5
Methodology Project Rollout
Common Cents is being implemented across the
Commonwealth with an initial Pilot followed by
three waves.
Two-part waves (1) data collection and analysis
(2) implementation
Wave 2IU 4, 5, 27
Wave 3IU 17
Wave 1IU 2,3
Wave 2IU 13
PilotIU 1
6
Methodology Project Rollout (contd)
A total of 38 school districts participated in
Common Cents in Year 1.
Pilot
Wave 1
Wave 2
Wave 3

• Jefferson-Morgan
• Canon-McMillan
• Chartiers-Houston
• Ringgold

• Pittsburgh
• Baldwin-Whitehall
• Brentwood Borough
• Clairton City
• Duquesne City
• Plum Borough
• Shaler Area
• South Allegheny
• Wilkinsburg

• Butler Area
• New Castle Area
• Commodore Perry
• Farrell Area
• Hermitage
• Jamestown Area
• Sharon City
• Sharpsville Area
• West Middlesex Area
• Conneaut
• North East
• Northwestern
• Ambridge
• Blackhawk
• Hopewell Area
• Lebanon

• Athens Area
• Northeast Bradford
• Sayre Area
• Towanda Area
• Wyalusing Area
• Montgomery Area
• Montoursville Area
• South Williamsport Area
• Southern Tioga

7
Year 1 Project Status

• The Common Cents Year 1 initiative is in the
  Implementation phase across all Waves, including
  the Pilot districts.

We Are Here
Report Finalization
Public Meetings and Pre-Implementation Discussions
Implementation Presentations
Report Finalization
Public Meetings and Pre-Implementation Discussions
Implementation Presentations
Report Finalization
Public Meetings and Pre-Implementation Discussions
Implementation Presentations
Report Finalization
Public Meetings and Pre-Implementation Discussions
Implementation Presentations
8
Year 1 Aggregate Potential Savings
Total Potential Savings by Wave (Aggregate
Mid-Range, Pilot and Waves 1-3)
Total Project-Wide Potential Savings 8,782,000

All potential savings figures are rounded to the
nearest thousand.
9
Year 1 Aggregate Potential Savings, contd.
Total Potential Savings by Recommendation
Categories (Aggregate Mid-Range, Pilot and Waves
1-3)



Total Project-Wide Potential Savings 8,782,000

Transportation savings figures include
specialized transportation and purchasing
data. General Purchasing savings figures
include copier, paper, and office supplies
data. Finance Payroll savings figures
include delinquent tax collection data (for wave
1-only). Real Estate Facilities saving
figures include custodial supply and utilities
data.
10
Year 2 Project Rollout and Methodology
11
Year 2 Project Rollout
Common Cents Year 2 continues to be implemented
across the Commonwealth.
Two-parts (1) data collection and analysis (2)
implementation
Year 2IU 6
Year 2IU 3
Year 2IU 12
12
Year 2 Project Rollout, contd.
Eleven (11) total school districts are
participating in Year 2 of the Common Cents
initiative.
13
Key Project Steps
Our approach to Year 2 includes the following key
steps

• Report on findings such as
• - Savings opportunities and related benefits
• - Aggregate-level initiatives

14
Woodland Hills Project Results
15
Woodland Hills School District Project Results
The table below provides the potential cost
savings for the Woodland Hills School District,
if the district were to implement the identified
opportunities
Potential Cost Savings are rounded to the
nearest thousand.
16
Cost Savings Considerations

• The realization of cost savings is dependent on
  full participation of other school districts. No
  district may realize these savings on their own.
• Many districts already use certain best practices
  such as participation in IU consortiums and state
  purchasing programs. Our intent is to grow,
  enhance, and share these best practices to help
  districts realize even greater savings.

17
Current Shared Service Arrangements

• The Woodland Hills School District currently
  participates in the following shared-service and
  consortium purchasing arrangements
• Consortiums
• -- Intermediate Unit 3 - Office Supplies,
  Paper Purchasing, Fuel
• -- US Communities - Office Supplies
• Other purchasing programs
• --  Member of COSTARS cooperative purchasing
  program
• -- Member of the Pennsylvania Education
  Purchasing Program for
  Microcomputers (PEPPM) purchasing program
• Transportation
• -- Shared services with Wilkinsburg School
  District

18
Woodland Hills Project Results, contd
Five specific opportunities across several
different categories were identified for Woodland
Hills during analysis.
19
Summary of Cost Savings Opportunities
Office Supplies includes all General Supplies
purchased for the district, including
Instructional Supplies. Currently, Woodland
Hills utilizes COSTARS for Copier purchases and
IU3 for Paper purchases.
20
Summary of Cost Savings Opportunities, contd
21
Summary of Cost Savings Opportunities, contd
22
Woodland Hills Next Steps

• Determine which, if any, recommendations to
  pursue after reviewing with the school board. The
  Common Cents team will provide support during
  this decision-making time.

• For districts that decide to implement, next
  steps will be to
• Prioritize and weigh each selected recommendation
  based on potential savings and ease of
  implementation.
• Finalize recommendations and participate in an
  Implementation Kick-Off meeting with other
  districts.
• Develop an action plan for implementation with
  guidance from the Common Cents Team.

23
Implementation Support

• The Common Cents team will work with your
  district to provide implementation support in the
  following ways
• Work with the district on implementation action
  plans
• Supply assistance and materials for districts
  choosing implementation such as
• Implementation Plan Templates
• RFP Templates (Request for Proposals)
• MOU Templates (Memo of Understanding)
• Vendor evaluation lists
• Monitor implementation plans to support success

24
Questions?
25
(No Transcript)