Study Guide

Field 056: School Treasurer
Sample Constructed-Response Assignment

The following materials contain:

Sample Test Directions for the Constructed-Response Assignment

To complete this assignment, you will need to view the introduction and four documents provided as exhibits. To view the exhibits, click the "Exhibits" button above. A pop-up window will appear. The pop-up window can then be resized and/or repositioned on your screen so the information can be accessed while completing your response. To view all exhibits, click the tabs at the top of the pop-up window.

Each of your responses will be scored on the extent to which you effectively communicate a whole message to the specified audience for the stated purpose. You will be assessed on your ability to apply professional knowledge in your response. Your response to each assignment will be evaluated on the basis of the following criteria:

Be sure to write about the assigned topic. You may not use any reference materials. Your response must be your original work, written in your own words, and not copied or paraphrased from some other work. Remember to review what you have written and make any changes you think will improve your written response. The final version of your response should conform to the conventions of edited English as used in the United States.

Sample Constructed-Response Assignment

Use the information and exhibits below to complete the tasks that follow.

Task 1: District Financial Analysis—Local Tax Revenues

Based on the information provided, what is the most important trend regarding local tax revenues that will affect planning in the Sky City School District? Be specific in your answer, being sure to clearly identify the trend, likely consequences for the district as a result of this trend, and the evidence necessary to justify your answer.

Your response should be approximately 100–200 words and may be in the format of your choice (e.g., paragraph, list).

Task 2: District Financial Analysis—State Aid

Based on the information provided, what is the most important trend regarding state aid that will affect planning in the Sky City School District? Be specific in your answer, being sure to clearly identify the trends, likely consequences for the district, and the evidence necessary to justify your answer.

Your response should be approximately 100–200 words and may be in the format of your choice (e.g., paragraph, list).

Task 3: District Financial Analysis—Expenditures Related to Salaries

Based on the information provided, what is the most important trend regarding expenditures related to salaries that will affect planning in the Sky City School District? Be specific in your answer, being sure to clearly identify the trends, likely consequences for the district, and the evidence necessary to justify your answer.

Your response should be approximately 100–200 words and may be in the format of your choice (e.g., paragraph, list).

Task 4: District Financial Analysis—Expenditures Related to Employee Benefits

Based on the information provided, what is the most important trend regarding employee benefits that will affect planning in the Sky City School District? Be specific in your answer, being sure to clearly identify the trends, likely consequences for the district, and the evidence necessary to justify your answer.

Your response should be approximately 100–200 words and may be in the format of your choice (e.g., paragraph, list).

Task 5: District Financial Analysis—Budget Projection and Communication

After reviewing the information provided, you prepare a presentation for the local school board about the long-term sustainability of the Sky City School District's financial resources and how district operations may be affected in the future. In your response:

Your response should be approximately 100–200 words and may be in the format of your choice (e.g., paragraph, list).

Scenario and Exhibits for the Constructed-Response Assignments

Introduction

You are the newly hired school treasurer of Sky City School District, a suburban district enrolling approximately 2,700 students in six school buildings—four elementary schools, one middle school, and one high school. The district has a history of student achievement near statewide averages. Slightly fewer than half of students who graduate from Sky City schools go on to two- and four-year colleges. The district has a history of strong support from the local community.

The local economy is centered on light manufacturing and agriculture. A number of local firms reduced their workforces over the past several years, and one midsize manufacturing firm closed. Fewer than half of students who earn college degrees return to settle in the community. As a result, the population is becoming smaller and older, and the average household income declined by almost 5% in the last four years. Approximately 21,000 people now live in Sky City, and student enrollment declined by more than 7% over the last four years. Staff reductions have occurred largely through individual retirements, as most vacated positions are not filled. When you were hired, the school board noted these trends.

You review information regarding student enrollment and staff, revenues and expenditures from the past three years, and projections for the current year as you prepare for your first forecast presentation to the school board. Additionally, you will meet with the district leadership team to discuss how the financial forecast could affect district operations.

Exhibit 1: School District Data
  3 Years Ago 2 Years Ago Last Year Current Year
Total Student Enrollment 2,907 2,815 2,757 2,685
Students with Disabilities 375 12.9% 372 13.2% 364 13.2% 369 13.7%
Economically Disadvantaged 1,459 50.2% 1,402 49.8% 1,349 48.97% 1,377 51.3%
English Learners 13 0.45% 15 0.52% 15 0.54% 17 0.63%
K–2 690 682 657 639
Grades 3–5 665 636 615 587
Grades 6–8 687 674 669 651
Grades 9–12 865 823 816 808
Real Property Valuation $553,492,733 $553,416,970 $552,885,920 $552,265,208
Operating Spending per Pupil $10,815 $11,320 $11,894 $12,145
% of Funds Spent on Classroom Instruction 59.4% 60.0% 60.2% 58.4%
Exhibit 2: School District Personnel Overview
  3 Years Ago 2 Years Ago Last Year Current Year
All Teachers (FTE) 184.5 181.2 177.7 176.4
Average Years of Experience 14.2 13.5 13.2 12.8
% of Teachers with a Master's Degree or Higher 65.7% 66.1% 66.7% 67.1%
Building-Level Administrators 9.0 9.0 8.0 8.0
District-Level Administrators 3.0 3.0 3.0 3.0
Instructional and Student Support Staff (FTE) 70.2 68.5 64.8 66.7
Other Staff (FTE) 162.4 161.2 160.2 158.3
Exhibit 3: School District Revenues
  3 Years Ago 2 Years Ago Last Year % Change Current Year
General Property Tax (Real Estate) $11,270,192 $11,049,208 $10,826,313 –3.9% $10,614,033
Tangible Personal Property Tax $777,041 $718,555 $708,444 –8.8% $660,390
Income Tax $4,726,718 $4,723,111 $4,724,333 –0.05% $4,697,350
Unrestricted State Grants-in-Aid $11,779,311 $11,763,113 $11,543,725 –2% $11,550,555
Restricted State Grants-in-Aid $404,634 $401,222 $412,865 2.0% $416,811
State Share of Local Taxes $1,653,931 $1,643,404 $1,644,410 –0.57% $1,644,130
All Other Revenues $3,761,855 $3,679,665 $3,238,040 –13.9% $1,558,878
Total Revenues $34,373,681 $33,978,278 $33,098,130 –3.7% $31,142,147
Advances-In $61,113 $54,311 $0 –100.0% $55,605
All Other Financing Sources $247,440 $74,967 $55,508 –77.6% $26,000
Total Other Financing Sources $308,553 $129,278 $55,508 –82.0% $81,605
Total Revenues and Other Financing Sources $34,682,234 $34,107,556 $33,153,638 –4.4% $31,223,752
Exhibit 4: School District Expenditures
  3 Years Ago 2 Years Ago Last Year % Change Current Year
Personnel Services $17,077,654 $17,233,311 $17,480,335 2.3% $17,962,201
Employees' Retirement/Insurance Benefits $6,997,876 $7,200,556 $7,876,987 12.6% $8,103,301
Purchased Services $5,379,818 $5,468,476 $5,540,827 3% $4,571,665
Supplies and Materials $985,594 $969,831 $844,423 –14.3% $954,234
Capital Outlay $501,681 $317,202 $341,525 –31.9% $325,846
Other Objects $498,525 $676,889 $709,949 42.4% $692,998
Total Expenditures $31,441,148 $31,866,265 $32,794,046 4.3% $32,610,245
Operating Transfers-Out $0 $442,036 $0 0.0% $0
Advances-Out $54,311 $0 $55,605 2.3% $0
Total Other Financing Uses $54,311 $442,036 $55,605 2.4% $0
Total Expenditures and Other Financing Uses $31,495,459 $32,308,300 $32,849,650 4.3% $32,610,245
Financing Sources over (under) Expenditures and Other Financing Uses $3,186,775 $1,866,250 $544,378 –83.0% ($566,700)
Cash Balance July 1—Excluding Proposed Renewal/Replacement and New Levies $4,246,135 $7,432,910 $9,299,160 119.0% $9,843,538
Cash Balance June 30 $7,432,910 $9,299,160 $9,843,538 32.4% $9,276,838

Sample Strong Response to the Constructed-Response Assignment

Task 1: District Financial Analysis—Local Tax Revenues

The most important trend regarding local tax revenue is that Sky City's population has decreased over the past four years and many of those who have remained are earning less money. This is due, in large part, to the light manufacturing industry in the district having reduced their workforce and one of the businesses closing. Because of this, the tax revenues (including general property tax, tangible personal property tax, and income tax) have dropped over the last three years and will continue to do so for the upcoming year (close to $300,000 since last year). Since this has been the trend for the last few years, it is unlikely that this will change soon.

A likely consequence of this is that we will need to find a means of cutting expenses. It is possible that we could recoup some costs from "All Other Revenues" (ex., building space rental), or cutting staff through attrition, but these will not likely be enough to balance the loss of revenue. More than likely, we will need to look at cutting programs if the tax rate isn't increased.

Task 2: District Financial Analysis—State Aid

A trend regarding state aid is that Unrestricted State Grants-In-Aid continue to drop. This represents roughly a third of all revenues. A rise in Restricted State Grants-In-Aid cannot make up for declines in Unrestricted State Aid. Costs continue to rise (staff/faculty salaries, retirements, etc.) at higher rates than what these grants can cover. This trend will likely continue, as it has decreased for the past three years. While enrollment is also declining at Sky City, it does not indicate a decline in expenses or programs, as operating spending per pupil has increased more than 12% over the past four years. This is likely due to increases in salaries and benefits, as well as the Consumer Price Index driving up the costs of goods and services.

We will need to find additional revenue or ways to cut costs. Most other sources, as illustrated in Total Other Financing Sources, could be increased with facility rental and the like, but this will not be enough to compensate for reduced aid long term. All options to avoid reducing programs and services should be explored.

Task 3: District Financial Analysis—Expenditures Related to Salaries

Expenditures related to salaries is a genuinely concerning trend. Salaries are responsible for more than half of Sky City's expenditures, as is often the case in school budgets. The district has not replaced teachers who have left or retired. While the total number of employees in the district has been reduced by 3.9% over the past four years, personnel costs rose by 2.3% during that time. Rising costs and less staffing is a troubling trend for all stakeholders.

To better understand the many factors involved in the scenario, the treasurer should request information from the superintendent and/or human resource manager about employee compensation, including union negotiations pursuant to the compensation scale. An example would include agreements about increased salary for post-bachelor's education. Another area to consider in looking to reduce salary costs might be to offer an early retirement incentive, which may cause a short-term hit to the budget but will allow new teachers to be hired at lower salaries, reducing costs in the long term. The treasurer may also need to review reducing non-instructional staffing levels to lower expenses, to see if that's feasible.

Task 4: District Financial Analysis—Expenditures Related to Employee Benefits

The trend of steadily rising retirement/insurance benefits is one of the most important trends that will affect planning. Retirement/insurance benefits represent almost one quarter of total expenditures. This is not unique, but what is concerning is that these costs rose by almost 16% over four years. Adding to the concern is the fact that the last two years have seen the largest increases.

It is worth asking if the district's means of reducing staff (at least partially through individual retirements) has accelerated spending in this category. To better understand the factors involved with benefits/insurance, the treasurer should gather information about the binding agreements in place regarding benefits. It is reasonable to assume that while actions may be limited in the short-term, exploring viable options for the future is a necessary step. Seeking an increased contribution level, both during employment and after retirement, through contract negotiations could cut costs long-term. While this is never popular with unions, it might be more appealing than losing positions. Another option might be to shop for better pricing on insurance, including the possibility of pooling resources with neighboring districts to negotiate lower costs due to a larger pool of insureds.

Task 5: District Financial Analysis—Budget Projection and Communication

The central emphasis of this treasurer's presentation should be to be positive, reflecting on the community's support of the district, while also being transparent and truthful, making the community aware that significant cuts to staff and/or programs may be necessary in the future. While stating that the district is not yet in immediate danger, quick and careful planning, partnered with significant changes, will be necessary to remain solvent, as expenditure is outpacing revenues, and this does not appear to be changing. The district's cash balance is healthier than it was four years ago, but if current trends in revenue and expenditure continue, the cash balance will become increasingly lean and dipping into this balance would be a poor step as a regular practice, especially in light of current trends.

An additional piece of information that would be helpful in the treasurer's analysis of Sky City's long-term sustainability would be how the district has managed to lower its "Purchased Services" line during this time by 15% and determining if this can this be replicated in other areas of the budget. Outsourcing educational programs has some positives but can drain a budget more than an on-campus program might.

Performance Characteristics

The following characteristics guide the scoring of responses to the constructed-response assignment.

Appropriateness The extent to which the response is written in the candidate's own words, addresses the assigned topic, and uses language and style appropriate for the specified audience
Focus and Unity The extent to which the response clearly states, and maintains clear connections to, the main idea or thesis statement, written in the candidate's own words
Organization The extent to which the response is effectively and coherently sequenced from sentence to sentence and paragraph to paragraph
Development The extent to which the response provides relevant, varied, and specific support to elaborate on the main idea or thesis statement, including addressing counterclaims
Grammar and Conventions The extent to which the response is written in the candidate's own words and shows control of grammar, sentence structure, usage, and mechanical conventions (i.e., spelling, punctuation, and capitalization)

Scoring Scale

Scores will be assigned to each response to the constructed-response assignment according to the following scoring scale.

Score Point Score Point Description
4 The "4" response demonstrates a strong command of writing skills.
  1. The response is written in the candidate's own words and fully addresses the purpose of the assignment. Language and style are appropriate.
  2. The main idea or thesis statement is clearly expressed and written in the candidate's own words. Connections to the main idea or thesis statement are effectively maintained.
  3. The response is effectively organized. Connections from sentence to sentence and from paragraph to paragraph are clear and purposeful.
  4. Support is strong and full. It is relevant, varied, and specific and includes arguments not found in the stimulus material. Counterclaims are effectively addressed.
  5. The response is written in the candidate's own words and there are very few, if any, errors in grammar and mechanics. Usage and word choice are effective and precise. Sentence structure is correct, effective, and varied.
3 The "3" response demonstrates a general command of writing skills.
  1. The response is generally written in the candidate's own words and generally addresses the purpose of the assignment. Language and style are generally appropriate.
  2. The main idea or thesis statement is expressed and generally written in the candidate's own words. Connections to the main idea or thesis statement are generally maintained.
  3. The response is mostly organized. Connections from sentence to sentence and from paragraph to paragraph are generally clear.
  4. Support is general. It is generally relevant, may not be varied, and includes at least one argument not found in the stimulus material. There are some specifics. Counterclaims are addressed.
  5. The response is generally written in the candidate's own words and there are minor errors in grammar and mechanics. Usage and word choice may be basic and contain minor errors. Sentence structure may contain minor errors and show only some variation.
2 The "2" response demonstrates a limited command of writing skills.
  1. The response may be only partially written in the candidate's own words and it partially addresses the purpose of the assignment. Language and style may be inappropriate.
  2. The main idea or thesis statement may have to be inferred or may be only partially written in the candidate's own words. Connections to the main idea or thesis statement are only partially maintained.
  3. The response is only partially organized. Connections from sentence to sentence and from paragraph to paragraph may be unclear.
  4. Support is limited. It may be only partially relevant and may not be specific. It may use only the arguments found in the stimulus material. The response includes an attempt to address counterclaims.
  5. The response may be only partially written in the candidate's own words and major and minor errors in grammar, mechanics, usage, word choice, and sentence structure are distracting and may interfere with meaning.
1 The "1" response demonstrates a weak command of writing skills.
  1. The response may be almost entirely written in language copied from the stimulus material. It attempts to address the purpose of the assignment. Language and style are inappropriate.
  2. The main idea or thesis statement is not clear or is merely copied from the stimulus material. Connections to the main idea or thesis statement are not maintained.
  3. There is little or no organization in the response. Connections from sentence to sentence and from paragraph to paragraph are unclear.
  4. Support is weak. There is little or no relevant development. It uses only the arguments found in the stimulus material. Counterclaims are not addressed.
  5. The response may be almost entirely written in language copied from the stimulus material. Numerous major and minor errors in grammar, mechanics, usage, word choice, and sentence structure impede meaning.
U The response is unrelated to the purpose of the assignment, illegible, primarily in a language other than English, not of sufficient length to score, or merely a repetition of the assignment.
B There is no response to the assignment.