WHEREAS, The Board of Education of Montgomery County is authorized by the Education Article and General Provisions Article of the Annotated Code of Maryland to conduct certain meetings or portions of its meetings in closed sessions; now therefore be it

Resolved,  That  the  Board  of  Education  of  Montgomery  County  conduct  a  closed session on November 11, 2014, in Room 120 of the Carver Educational Services Center,
850 Hungerford Drive, Rockville, Maryland,  from  10:30 a.m. to approximately
11:30 a.m.; and 1:30 p.m. to approximately 2:30 p.m.; and be it further

Resolved,  That the superintendent of schools brief the Board on the Human Resources Monthly Report with a subsequent vote in open session, which is an administrative function outside the purview of the Open Meetings Act and, to the extent any individual employee is discussed, as permitted under Section 3-305(b)(1) of the General Provisions Article; and be it further

Resolved, That the Board receive legal advice concerning the school calendar, as permitted under Section 3-305(b)(7) of the General Provisions Article; and be it further

Resolved, That the superintendent of schools brief the Board on a school safety incident which is an administrative function outside the purview of the Open Meetings Act and, the Board receive legal advice about a school safety incident, as permitted under Section 3-305(b)(7) of the General Provisions Article; and be it further

  Resolved, That the meeting continue in closed session until the completion of business.

WHEREAS, It has long been our custom to commemorate November 11—the anniversary of the ending of World War I—by paying tribute to the heroes of that tragic struggle and by rededicating ourselves to the cause of peace; and

WHEREAS, In the intervening years the United States has been involved in two other great military conflicts, which have added millions of veterans living and dead to the honor rolls of this Nation; and

WHEREAS, The Congress passed a concurrent resolution on June 4, 1928, (44 Stat. 1962), calling for the observance of November 11 with appropriate ceremonies, and later provided in an act approved May 13, 1938, (52 Stat. 351), that the eleventh of November should be a legal holiday and should be known as Armistice Day; and

WHEREAS, In order to expand the significance of that commemoration and in order that a grateful nation might pay appropriate homage to the veterans of all its wars who have contributed so much to the preservation of this Nation, the Congress, by an act approved June 1, 1954, (68 Stat. 168), changed the name of the holiday to Veterans Day; now therefore be it

Resolved, That the Board of Education and the Montgomery County Public Schools students, staff members, parents, and the entire community salute the sacrifices of the men and women of the United States Armed Forces.

WHEREAS, The National Association of School Psychologists has designated
November 10–14, 2014, as School Psychology Awareness Week to recognize the important work school psychologists do to support children’s learning and well-being; and

WHEREAS, The theme for this year’s School Psychology Awareness Week, “Strive. Grow. THRIVE!” focuses on promoting personal achievement, growth, and resilience, as well as a sense of connectedness and well-being; and

WHEREAS, School psychologists deliver needed mental health services and supports to students and are specially trained to help create positive learning environments where students feel safe, engaged, supported, and challenged; and

WHEREAS, School psychologists collaborate with parents and educators to ensure that all children have the mental health and learning supports they need to succeed in school and life; and

WHEREAS, It is appropriate that Montgomery County Public Schools recognizes the critical role of school psychologists in promoting students’ academic development as well as their social, emotional, and physical well-being; now therefore be it

Resolved, That the Montgomery County Board of Education and the superintendent of schools hereby proclaim November 10–14, 2014, as School Psychology Awareness Week in Montgomery County Public Schools and commend observance to all of our schools’ community.

WHEREAS, American Education Week presents all of us with a wonderful opportunity to celebrate public education and honor the people who make a difference in ensuring that every child receives a quality education, and

WHEREAS, The theme, “Raise Your Hand for Student Success,” encourages our staff and community to continue to work together to provide our students with a high quality education that ensures they are college and career ready; and

WHEREAS, Montgomery County Public Schools has high expectations for every child and is fortunate to have staff, parents/guardians, and community partners who all raise their hands to serve our students; and

WHEREAS, All Montgomery County Public Schools’ staff—teachers, specialists, administrators, support professionals—work to serve our students and families with care and professionalism; and

WHEREAS, Parents demonstrate a commitment to student success by partnering with our schools, engaging with their children’s education, and supporting learning at home; and

WHEREAS, Community partners serve our students and school programs by providing vital support that facilitates authentic learning opportunities and enhances the curriculum; and

WHEREAS, In acknowledgement of American Education Week, we take time to celebrate that schools bring together a learning community of children, parents/guardians, educators, volunteers, business leaders, and elected officials who all “raise their hands” to support our common goal of educating our students to realize their future dreams; now therefore be it

Resolved, That the Montgomery County Board of Education and the superintendent of schools hereby declare November 17 through November 21, 2014, be observed as the 91st annual observance of American Education Week in Montgomery County Public Schools.

WHEREAS, Montgomery County Public Schools will celebrate National Inclusive Schools Week, December 1–5, 2014, by embracing the theme, “Inclusive Education: One School Community”; and

WHEREAS, Montgomery County Public Schools promotes and values inclusive opportunities for students with disabilities to ensure full participation in all aspects of school life; and

WHEREAS, Montgomery County Public Schools strives to deliver a continuum of special education services for students with disabilities from birth through age 21 that promotes meaningful access to the general education environment; and

WHEREAS, Montgomery County Public Schools is committed to a culture of equity and respect for diversity and differences that creates an educational environment that is physically and emotionally safe for learning; and

WHEREAS, Montgomery County Public Schools endorses social and recreational activities such as Best Buddies and Corollary Sports to encourage authentic friendships among students with disabilities and their nondisabled peers; and

WHEREAS, Montgomery County Public Schools embraces social inclusion and recognizes the importance of practices and activities that promote social emotional learning; and

WHEREAS, Montgomery County Public Schools values family and community partnerships that support the acceptance of individuals with disabilities in school and the community; and

WHEREAS, The educators and families of Montgomery County Public Schools celebrate their accomplishments in promoting inclusive education and consider how they might build upon these successes to expand their efforts; now therefore be it

Resolved, That Montgomery County Public Schools joins with the Maryland State Department of Education in declaring the week of December 1–5, 2014, as National Inclusive Schools Week and encourages schools across the county to promote inclusion by sponsoring appropriate learning and community-building activities.

WHEREAS, The educators and others who are employed by Montgomery County Public Schools are key partners in the important work and achievements of the school system; now therefore be it

Resolved, That the Board of Education approves the monthly Human Resources and Development Report with its listings identifying new employees, employee resignations, and other employee status updates; and be it further

Resolved, That the members of the Board of Education and the superintendent of schools express their condolences to families of deceased employees; and be it further

Resolved, That this resolution be made a part of the minutes of this meeting.

Montgomery County Public Schools parents, community members, students, and staff are informed of the Board-adopted school calendar each year, along with a contingency plan identifying those days that will be used to make up lost instructional time due to emergency closings.

Additionally, a draft calendar for the next school year, 2016-2017, will be presented.

PLEASE NOTE:  During the meeting, the Board of Education adopted the following amendment regarding the 2015-2016 school year calendar:

WHEREAS, The establishment of school terms by the Board of Education is required by Maryland State law; and

WHEREAS, Montgomery County Public Schools parents, community members, students, and staff should be informed of the Board-adopted school calendar each year and the subsequent contingency plan identifying days that will be used to make up lost instructional time due to emergency closings; now therefore be it

Resolved, That the proposed calendar and contingency plan for Montgomery County Public Schools for the 2015–2016 school year as outlined in Revised Attachment A be adopted.

Revised Attachment

School Calendar for 2015–2016

WHEREAS, Funds have been budgeted for the purchase of equipment, supplies, and contractual services; now therefore be it

Resolved, That having been duly advertised, the following contracts will be awarded to the low bidders meeting specifications as follows:       

* Denotes Minority-, Female-, or Disabled-owned Business

**Planned Life-cycle Asset Replacement (PLAR)

Note:  Contract amounts will be based on individual requirements.

Formal bids and requests for proposals (RFPs) were obtained and evaluated by the Procurement Unit, Department of Materials Management, in consultation with the users.  The tabulations, cost comparisons, and budget account verifications are available in Procurement’s files.

Resolved, That having been duly advertised, the following contracts will be awarded to the low bidders meeting specifications as follows:          

* Denotes Minority-, Female-, or Disabled-owned Business

**Planned Life-cycle Asset Replacement (PLAR)

Note:  Contract amounts will be based on individual requirements.

Formal bids and requests for proposals (RFPs) were obtained and evaluated by the Procurement Unit, Department of Materials Management, in consultation with the users.  The tabulations, cost comparisons, and budget account verifications are available in Procurement’s files.

WHEREAS, On February 14, 2012, the Board of Education authorized staff to utilize
a construction management process for the William H. Farquhar Middle School Revitalization/Expansion project and awarded a contract for preconstruction services to Dustin Construction, Inc.; and

WHEREAS, The following sealed bids were received on October 23, 2014, for the site work for the William H. Farquhar Middle School Revitalization/Expansion project:

and

WHEREAS, The Minority Business Enterprise participation will be reported at the completion of all bid activity for this project; and

WHEREAS, The low bidder, Pleasants Construction, Inc., has completed similar work successfully for Montgomery County Public Schools; now therefore be it

Resolved, That a $8,957,531 contract be awarded to Pleasants Construction, Inc. for the initial phase of the William H. Farquhar Middle School Revitalization/Expansion project in accordance with drawings and specifications prepared by Hord Coplan Macht, Inc.

The Provision for Future Supported Projects is a lump sum appropriation that allows the Board of Education, under certain conditions, to approve the receipt and expenditure of unanticipated grant funds throughout the year rather than request supplemental appropriations from the County Council.  Descriptions of the grant projects are provided below.  Detail is provided for each award, indicating the name of the project, the award amount, the number of positions, and the funding sources.  There also is a brief summary of the purpose of each project and how the funds will be used. 

Authorization is requested to receive and expend, within the Fiscal Year (FY) 2015 Provision for Future Supported Projects, grant awards totaling $490,764 for the following continuing projects:

• Title III, Emergency Immigrant Education
• Kindergarten Readiness Assessment
• Carl D. Perkins Career and Technical Education Improvement Grant – Reserve Funds
• Maryland Advanced Placement (AP)/International Baccalaureate (IB) Test Reduction Program

Continuing Projects

Purpose of the project:  Montgomery County Public Schools (MCPS) has received FY 2015
Title III, English Language Acquisition grant funding of $3,405,775 to provide instructional and support services to students with Limited English Proficiency (LEP) and immigrant students with interrupted formal education to improve their English language proficiency. This represents an increase of $51,010 from the FY 2015 approved budget of $3,354,765.  Additional funds in the amount of $29,133 for the LEP portion of the grant will be used for post-traumatic stress disorder and attachment disorder training for English for Speakers of Other Language (ESOL) transition counselors to meet the needs of newly enrolling unaccompanied minors from Central America. Additional funds in the amount of $21,877 for the English Language Learners (Immigrant) portion of the grant are for instructional materials for ESOL students with interrupted formal education.

Purpose of the project:  MCPS has received $315,360 from the MSDE for the Kindergarten Readiness Assessment. The Kindergarten Readiness Assessment replaced the Maryland Model for School Readiness assessment and provides a wider range of measures by which to assess a child’s readiness to learn. The Kindergarten Readiness Assessment assesses children on the basis of
30 different readiness indicators in addition to 7 developmental dimensions. By providing more information about a student’s growth along a broader array of measures, results of the Kindergarten Readiness Assessment will provide better measures of a student’s progress toward developing higher order thinking skills, and will enable teachers to tailor instruction to the needs of individual students. Funds will provide for teacher stipends, supplies and materials, and associated employee benefits.

Purpose of the project:  MCPS has received $68,504 from the MSDE, Division of Career and College Readiness, for the Carl D. Perkins Career and Technical Education (CTE) Improvement grant. This grant supports the following CTE programs:

• Academy of Health Professionals at the Thomas Edison High School of Technology - $400
• Information Technology and Computer Science program at Rockville High School - $7,962
• Connect to the Future at Seneca Valley High School - $8,000
• Information Technology and Computer Science program at Wheaton High School - $7,962
• Project Lead the Way Biomedical Sciences at Gaithersburg High School - $19,180
• Project Lead the Way Biomedical Sciences at Wheaton High School - $25,000

These programs are designed to increase the number of students completing MCPS Career Pathway Programs and prepare them for postsecondary success. Funds provide for instructional materials, professional part-time salaries, dues, registration materials and fees, and associated employee benefits.

Purpose of the project:  MCPS has received $55,890 from MSDE for the Maryland AP/IB Test Reduction Program grant. The purpose of the grant is to reimburse eight MCPS high schools for AP and IB test fees for students who qualify for test fee waivers based on income eligibility.

Recommended Resolution

WHEREAS, The above-noted grants qualify for a transfer of appropriation from the Provision for Future Supported Projects, pursuant to the provisions of County Council Resolution
No. 17-1112, approved on May 22, 2014; and

WHEREAS, The above-noted projects do not require any present or future county funds; and
 

WHEREAS, Sufficient appropriation is available within the Fiscal Year 2015 Provision for Future Supported Projects to permit the above-noted transfers within state categories; now therefore be it

Resolved, That the superintendent of schools be authorized by the Montgomery County Board of Education to receive and expend $490,764 within the Fiscal Year 2015 Provision for Future Supported Projects, specified as follows:

and be it further

Resolved, That a copy of this resolution be sent to the county executive and the County Council.

On August 22, 2014, Montgomery County Public Schools (MCPS) issued Request for Proposal (RFP) No. 4356.1, External Review of Specific Special Education Processes and Services, to solicit and engage a professional and knowledgeable firm to conduct an external review of specific special education processes and services.  Through analysis of existing data and multiple other sources including, but not limited to, surveys of family members, feedback from principals and other staff, input from students receiving special education services, and stakeholder focus groups, the external review is intended to answer a series of questions identified by the  Board of Education (Board) regarding the specific processes and services utilized by MCPS in the development of Individualized Education Programs (IEPs) under the Individuals with Disabilities Education Act, in the implementation of IEPs, and in IEP dispute resolution.

The RFPs were sent to a wide range of firms and advertised on the MCPS website following standard procedures.  Six entities submitted proposals.  The proposals were reviewed by an evaluation committee consisting of MCPS staff, as well as two co-chairs of the Special Education Advisory Committee.

Proposals were reviewed based on the evaluation criteria outlined in the RFP relating to the firm’s proposed approach to the external review.  Criteria included how the proposal will meet MCPS’ needs, qualifications and experience of the firm relevant to the scope of services, experience of the lead reviewer and principal employees responsible for this project, references provided, and pricing.

Interviews were conducted on October 16 and 23, 2014, with three firms.  As a result of the process, the selection committee identified ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­WestEd as the most responsive and responsible firm.  WestEd is a nonprofit organization with extensive experience conducting data-focused program evaluations and research studies. WestEd’s mission is to work with education and other communities to promote excellence; achieve equity; and improve learning for children, youth, and adults.  Some of WestEd’s recent work includes evaluations of special education services—including analysis of data from multiple sources such as interviews, focus groups, classroom observations, and IEP reviews—for Charlotte-Mecklenburg (North Carolina) Public Schools, Beaufort County (South Carolina) School District, Cambridge (Massachusetts) Public Schools, and the state of Hawaii. 

The selection committee recommends that the Board of Education award this contract to WestEd, with a one-year contract term beginning on November 12, 2014. 

WHEREAS, The Board of Education approved an external review intended to answer a series of questions regarding the specific processes and services utilized by Montgomery County Public Schools in the development of Individualized Education Programs under the Individuals with Disabilities Education Act , in the implementation of Individualized Education Programs, and in Individualized Education Program dispute resolution; and

WHEREAS, Having been duly advertised under Request for Proposal No. 4356.1, External Review of Specific Special Education Processes and Services, consultant firms were asked to submit proposals for consideration; and

WHEREAS, The evaluation process has identified that WestEd best meets the needs of Montgomery County Public Schools; now therefore be it

Resolved, That a contract for $150,000 be awarded to ­­­­­­­­­­­­­­­­­­­­­­­WestEd to conduct an external review of special education services under the terms set forth in Request for Proposal No. 4356.1; and be it further

Resolved, That the Board of Education president and superintendent of schools be authorized to execute the documents necessary for this transaction.

This financial report reflects the actual financial condition of Montgomery County Public Schools (MCPS) as of September 30, 2014, and projections through June 30, 2015, based on program requirements and estimates made by primary and secondary account managers.  At this time, revenues have a projected surplus of $1.8 million, and expenses have a projected surplus of
$13.0 million. 

The County Council appropriated $38,172,451 of fund balance for the Fiscal Year (FY) 2015 Operating Budget.  As a result of additional savings realized at the end of FY 2014, the FY 2015 beginning fund balance is $1,182,633. Based on revenue and expenditure projections as of September 30, 2014, the FY 2015 fund balance at year end will be $16.0 million.  This amount will be used to help fund the FY 2016 Operating Budget.

Three potential issues could result in category deficits and/or a reduction of the $13.0 million projected surplus in expenditures.  If weather conditions are similar to or worse than last year, usage, as well as the price for the portion of electricity and natural gas that is purchased at market rates, will result in increased utilities costs.  The second concern relates to the projected cost of additional students with disabilities placed in nonpublic school-age day programs.  Last year, the number of students enrolled in nonpublic school-age day programs increased significantly from the prior year.  Because the increase occurred over several months, and after the FY 2015 Operating Budget was developed, the current FY 2015 projection for Category 6 includes a deficit for nonpublic placements.  If there is an increase in the number of students placed in nonpublic programs from the number of students currently projected, costs will increase and Category 6 may end the year in deficit.  The third issue is related to projected active employee and retiree health care costs.  Based on the County Council’s final action on the FY 2015 Operating Budget, we are projecting a reduction of the reserve in the Employee Benefit Plan trust funds to approximately one percent of annual expenditures.  If claims for the remaining months of the year are higher than currently projected, there may be an insufficient balance in the trust fund to cover costs. These potential issues are discussed in depth in the explanations of the projections for Categories 6, 10, and 12.

Attachment 1 presents a chart displaying budgeted and projected revenues as reflected in this report.  Attachment 2 is a chart detailing expenditure information by state category. The chart displays authorized (budgeted) expenditures, actual year-to-date expenditures and encumbrances, projected expenditures for the remainder of the fiscal year, and the projected year-end balance as reflected in this report. 

REVENUE

Total revenue is projected to be $2,289,088,298, which is $1,800,000 more than the current budget of $2,287,288,298.

County

The projected revenue from the county is $1,476,855,309.  This is the same as the amount budgeted for FY 2015.

State

The projected revenue from the state is $620,765,933.  This is $2.0 million more than the amount budgeted. The surplus revenue is related to the projected amount that MCPS will receive for special education students who attend nonpublic schools.  There are more students projected to attend nonpublic school-age day programs than was anticipated when the FY 2015 Operating Budget was developed.   MCPS is required to pay 300 percent of the average per pupil cost plus 30 percent of the tuition amount that exceeds the 300 percent amount.  The state pays 70 percent of the amount that exceeds the 300 percent amount.  If total tuition costs are higher, state revenue will be higher.

Federal

The projected revenue from Impact Aid is $200,000.  This is $200,000 less than the $400,000 budgeted.   

Other

The projected revenue from other sources is $3,875,708, which is the same as the amount budgeted.

Appropriated Fund Balance

The projected revenue from appropriated fund balance is $40,682,985. This amount includes $2,510,534 for prior-year encumbrances.

Enterprise Funds

The projected revenue from enterprise funds is $60,818,601.

Supported Projects

The anticipated revenue for supported projects is $85,889,763.  This estimate includes $7,985,829 carried forward from FY 2014.  Projects approved through September 30, 2014, have been assigned $79,495,111.

EXPENDITURES

There is a projected surplus of $13,000,000. There are projected surpluses in Category 1, Administration; Category 2, Mid-level Administration; Category 3, Instructional Salaries; and Category 4, Textbooks and Instructional Supplies. At this time, expenditures for all other categories are projected to be on budget by the end of the fiscal year. The following provides an explanation of the projections for each category.

Category 1—Administration

There is a projected end-of-year surplus of $500,000 in Category 1, Administration.  As of September 30, 2014, 90 percent of the funds budgeted in this category have been spent or encumbered.  It is projected that an additional $3.9 million, or 9.0 percent, of budgeted funds will be spent during the remainder of the year. There currently are 16.3 vacant full-time equivalent (FTE) positions.  The balances associated with these vacancies are partially offset by the estimated amount that will be needed to fill the vacancies, resulting in an overall projected position salary surplus of $1.0 million. Temporary part-time salaries are projected to be on budget.  There is a projected deficit of $500,000 for contractual services largely due to a projected deficit in the legal fees accounts and the hiring of outside contractors for technology services as a result of vacant positions.  

Category 2—Mid-level Administration

There is a projected end-of-year surplus in Category 2, Mid-level Administration, of
$2.5 million. As of September 30, 2014, 95.3 percent of the funds budgeted in this category have been spent or encumbered, and it is anticipated that an additional $4.1 million, or 3.0 percent, of budgeted funds will be expended during the remaining months of the year.  Currently, there are 26.3 vacant FTE positions, and most of the surplus ($2.3 million) is related to position salary balances.  There is a projected surplus of $100,000 for long-term leave.  In addition, there is a projected surplus of $100,000 in contractual services, supplies and materials, and for mileage reimbursement for local travel.

Category 3—Instructional Salaries

Category 3, Instructional Salaries, is projected to end the year with a surplus of $9.0 million.  As of September 30, 2014, approximately 95.1 percent of the funds budgeted in this category have been spent or encumbered.  It is projected that an additional $33.8 million, or 3.9 percent, of the budgeted amount will be spent during the remainder of the year.  There is a $6.5 million surplus projected for position salaries based on 198.0 vacant FTE positions. The balance includes salaries for long-term teacher substitutes who fill vacant teacher positions.  There is a $2.5 million surplus projected in temporary part-time salaries.  This is primarily due to projected surpluses for
short-term substitute salaries, expenditures for long-term leave, and costs for sick and annual leave payments to employees.  

Category 4—Textbooks and Instructional Supplies

Expenditures in Category 4, Textbooks and Instructional Supplies, are projected to have a surplus of $1.0 million.  As of September 30, 2014, approximately 44.1 percent of the funds budgeted in this category have been spent or encumbered. It is projected that an additional $15.0 million, or 52.4 percent, of the budgeted amount will be spent during the remainder of the year.  Remaining funds are projected to be spent throughout the rest of the fiscal year for textbooks, instructional supplies and materials, media materials, and school equipment purchases that cost less than $1,000.

Category 5—Other Instructional Costs

Expenditures in Category 5, Other Instructional Costs, are projected to be on budget.  As of September 30, 2014, approximately 38.6 percent of the funds budgeted in this category have been spent or encumbered.  It is projected that $6.6 million will be spent during the year to cover a variety of expenditures including costs for interscholastic sports, replacement of school furniture and equipment, and maintenance of duplicating equipment.

Category 6—Special Education

At this time, expenditures for Category 6, Special Education, are projected to be on budget.  As of September 30, 2014, 94.8 percent of the funds budgeted in this category have been spent or encumbered.  Currently, there are 77.3 vacant FTE positions.  Position salary balances resulting from vacant FTE positions are offset by long-term substitutes for classroom coverage and temporary part-time salaries and contractual services to provide services to students with disabilities as prescribed on their Individualized Education Program.  This results in an overall surplus of $1.4 million.  Offsetting this surplus is a $1.4 million projected deficit for tuition for students with disabilities served in nonpublic programs.  This deficit is based on costs associated with additional students that enrolled in nonpublic day programs in FY 2014 after the FY 2015 Operating Budget was developed, and additional students projected for FY 2015.  The Office of Special Education and Student Services has been experiencing an increasing number of referrals for nonpublic programs for elementary and high school students with emotional disabilities, and elementary students with autism.  If the actual number of students placed this year exceeds the current projected number of students, the associated costs could result in an overall deficit in Category 6.

Category 7—Student Personnel Services

Expenditures for Category 7, Student Personnel Services, are projected to be on budget. As of September 30, 2014, approximately 95.7 percent of all budgeted funds in this category have been spent or encumbered.  There are 2.0 vacant FTE positions.  It is expected that the projected salary balance of $65,000 will be offset by expenditures for part-time salaries and operating expenses that will continue to be made throughout the year.

Category 9—Student Transportation

The projection for Category 9, Student Transportation, is expected to be on budget.  As of September 30, 2014, approximately 66.1 percent of all budgeted funds in this category have been spent or encumbered.  There are 107.2 position vacancies.  The associated position salary surplus is $1.8 million.  The FY 2015 Operating Budget included too much lapse and turnover savings in this category since the savings in position salaries normally offsets costs for temporary part-time bus operators and attendants that cover bus routes when positions are vacant. Temporary part-time salaries are projected to have a deficit of $2.3 million.  Although the market is volatile, there is a projected surplus of $500,000 in bus fuel based on lower actual and projected costs. 

Category 10—Operation of Plant and Equipment

Expenditures for Category 10, Operation of Plant and Equipment, are projected to be on budget.  Approximately 66.5 percent of all budgeted funds in this category have been spent or encumbered, and remaining budgeted funds are expected to be spent throughout the remainder of the year.  Currently, there are 56.0 FTE position vacancies, primarily building service positions.  There is a projected position salary surplus of $1.4 million and a projected deficit of $500,000 for building service substitute salaries and long-term leave.  Also, there is a deficit of $400,000 for vehicle operating costs in the Department of Materials Management.  There is a projected deficit of $500,000 for utilities.  Consumption and rates for electricity, and rates for natural gas, are projected to be slightly higher than budgeted.  If winter temperatures are colder than normal, as was the case last year, additional expenditures for electricity and natural gas may result in a deficit in Category 10.

Category 11—Maintenance of Plant

Expenditures in Category 11, Maintenance of Plant, are projected to be on budget.  Approximately 76.3 percent of budgeted funds have been spent or encumbered as of  September 30, 2014, and all funds are expected to be spent by year-end.  There are currently 26.5 FTE position vacancies, and position salary savings from lapse and turnover is projected to be $700,000.  This amount is offset by projected deficits of $50,000 for long-term leave, $400,000 for maintenance and grounds care supplies and equipment, and $250,000 for vehicle operating costs.

Category 12—Fixed Charges

At this time, expenditures for Category 12, Fixed Charges, are projected to be on budget.  Approximately 29.7 percent of budgeted funds have been spent as of September 30, 2014.  Last spring, as part of final action on the FY 2015 Operating Budget, the County Council reduced the budget for Category 12 by $40.5 million by using reserve funds from our health care trust funds. Of the $40.5 million, $27.2 million of the $51.1 million in the MCPS’ Other Post-Employment Benefits Trust Fund was shifted to the Employee Benefit Plan (EBP) Retiree Trust Fund to pay for retiree health costs.  In addition, $13.3 million was cut with the intention of reducing the EBP Retiree Trust Fund balance of $18.5 million for retirees to $5.2 million beginning in FY 2015.  Based on actual FY 2014 experience and current projections for FY 2015 (based on three months of actual data), the fund balance for both active employees and retirees is projected to be below $4 million, or less than 1 percent of annual expenditures.  If claims are higher than currently projected, the trust fund balance will be insufficient, resulting in a deficit in Category 12.

The Montgomery County Board of Education adopted its first legislative platform in 2001,

in preparation for the 2002 legislative session. Since that time, the development, adoption,

and distribution of a platform statement prior to the beginning of each legislative session

has enhanced the effectiveness of Board advocacy on state budget and legislative issues.

The platform provides a vehicle for summarizing the Board’s positions on priority issues

without precluding the consideration of additional legislative and budget issues that arise

during the legislative session. Similar to previous years’ efforts, the 2015 document will be

distributed to members of the General Assembly, partner organizations, and the community

before and during the legislative session, and will be posted on the Board of Education’s

web site.

The purpose of this memorandum is to request approval to develop pilot courses.  Pilot courses are submitted to the Board of Education as required by Board of Education Policy IFA, Curriculum, approved February 13, 2001, and Montgomery County Public Schools Regulation, IFA-RA, Curriculum. The policy requires that initial information regarding proposed curriculum development or significant revisions be presented to the Board of Education for approval.  The Office of Curriculum and Instructional Programs (OCIP) continues to implement a process for pilot courses and is recommending six new pilot courses:  one externally developed course and five noncore high school courses.  OCIP also recommends eight courses to become restricted to specific high schools.  The attached presents a summary of proposed pilot courses and the restricted pilot courses that have successfully completed the pilot process.

Proposed pilot courses that have completed the pilot process successfully and are recommended to be approved as active or restricted are submitted to the Board of Education for review and approval.  These pilot courses are developed by local schools, central services staff members, or external organizations.

Separate from the pilot course process, OCIP continues to review secondary school courses offered in Montgomery County Public Schools (MCPS).  During the 2014–2015 scheduling season, five high school courses were removed from the district’s offerings.

The courses recommended to be piloted reflect the dedication, professionalism, and responsiveness of teachers, administrators, and central services staff members to satisfy a wide range of student needs and interests.  In many cases, teachers collaborated with colleagues in MCPS schools and central services staff members.  Curriculum writers demonstrated careful consideration of course outcomes, rigor, and relevance.

The following resolution is included for your consideration.

WHEREAS, On February 13, 2001, the Board of Education adopted Policy IFA, Curriculum, governing all curriculum development and implementation; and

WHEREAS, Montgomery County Public Schools established procedures under Regulation IFA-RA, Curriculum, to allow school staff to develop and pilot noncore curriculum courses through the Office of Curriculum and Instructional Programs; and

WHEREAS, Montgomery County Public Schools established procedures under Regulation IFA-RA, Curriculum, to allow externally developed curriculum and instructional programs to be used in place of Montgomery County Public Schools curriculum after review and approval, using the process for noncore curriculum development; and

WHEREAS, The proposed courses have met all of the requirements established in the procedures; and

WHEREAS, These proposed courses support and extend high school signature, academy, career and technology, and elective programs; now therefore be it

Resolved, That the Board of Education approves the following courses as pilot courses or restricted courses in accordance with the procedures established in Regulation IFA-RA, Curriculum.

The high school milestones presentation represents the first of four presentations for this school year reporting on the status of the system vis-à-vis the milestones as articulated in the Strategic Planning Framework, Building Our Future Together: Students, Staff, and Community.  It is intended that each presentation is viewed as one part of a whole, with each subsequent presentation building on the proceeding conversation.  The high school presentation will include available data for the Grade 9 and college and career readiness milestones.  The presentations will report on the status of our efforts to improve teaching and learning and to close the achievement gap.

Career Readiness

In the October 14, 2014, memorandum, Career Readiness, I outlined a plan to increase the number of options a student may have upon graduation.  The four key initiatives were identified as the following:

• The implementation of Career Readiness Skills in all curricular areas,
• The expansion of project-based and problem-based learning,
• Renewed support for diverse career pathways, and
• Expansion of externships for high school staff members.    

The career readiness initiatives represent a strong component in the overall approach to improve performance and opportunities for our high school students.  The high school milestones presentation will outline activities and programs at the school and district levels designed to improve performance on the college and career milestones as well as milestones for the very pivotal Grade 9 year.  We will highlight how differentiation is occurring to provide the most support to the areas of highest need.          

High School Milestones: Grades 9 and College and Career Readiness Presentation

The high school milestones presentation will detail the disaggregated results for district milestones—English with a grade of C or higher, Mathematics with a grade of C or higher, Eligibility, Algebra 2 with a grade of C or higher, AP 3 or higher/IB 4 or higher, SAT 1650 or higher/ACT24 or higher, and Hope, engagement, and well-being.  A new data presentation format will be debuted during the presentation.  Using a color coding system, heat maps will be used to provide a quick overview of district performance and the performance for sub groups.  The heat map presentation format is a product of the Montgomery County Board of Education strategic planning committee.  The committee met multiple times over the previous year to refine the heat maps and ensure the presentations would provide a concise yet comprehensive view of district progress.  In addition to the heat maps, detailed data will supplement overviews as appropriate. 

Figure 1 illustrates a sample heat map for the Grade 9 eligibility milestone, and the 2014–2015 district target is 88.0 percent. The first column shows the results from last year.  The trend column is based on progress from the 2012–2013 school year to the 2013–2014 school year.  The color coding is implemented using business rules that are applied to each cell.  The business rules for the trend cells are as follows:

• Blue is ≥ 3.0
• Green is 0.0 to 2.9
• Yellow is -0.1 to -2.9
• Red is ≥ -3.0

Figure 1 - See chart in attached memo.

In the example in Figure 1, English for Speakers of Other Languages (ESOL) trend was color coded blue because the 2012–2013 percent eligible was 76.6 and the 2013–2014 percent eligible was 80.0.  The 3.4 percentage point increase dictated the blue assignment.

The gap calculations also are based on year to year progress.  The two lowest performing race groups are compared to the highest performing race group.  As a result of this comparison method, two race group cells with have a color code and the other race groups will not.  For the ESOL, Free and Reduced-price Meals Systems (FARMS), and Special Education groups, students receiving services are compared with students who are not receiving those services.  As with trend, the gap color coding consistency is ensured through the use of business rules.  The gap reduction business rules are as follows:

• Blue is ≥ 30% reduction or < 5 difference
• Green is 15.0% to 29.9% reduction
• Yellow is 0.1% to 14.9% reduction
• Red is ≤0% reduction

For the eligibility example, the gap cell for Black or African American was coded yellow.  The year to year comparison reflected the gap between Black or African American students and Asian students (the highest performing race group) decreased by 7.0 percent.  The business rules represent aggressive gap reduction expectations that clearly demonstrate our commitment to equity.  Using this model, all colors except red indicate that the gap is closing.  Red cells indicate no progress or a gap that is widening.   

The high school milestones data generally illustrate that we are holding steady or improving in many areas in a time of great transition.  However, the review of the heat maps clearly shows that we are not succeeding at an acceptable level for some of our most vulnerable students.  In particular, our ESOL and special education student results demonstrate a need to improve our services for those students.  We will provide additional detail and analysis for these trends as well as other specific areas of success and concern identified by the milestone heat maps.

Our milestones allow us to review how well we are meeting the challenges and maximizing our opportunities.  We will discuss the data, what it means, and the implications for our work.  The Office of School Support and Improvement will discuss how the ongoing work of implementing high-impact instructional leadership practices and examining school progress using the School Support and Improvement Framework is improving outcomes for students.  This milestone conversation will inform our future discussions on the progress of the district. 

WHEREAS, The Board of Education of Montgomery County is authorized by the Education Article and General Provisions Article of the Annotated Code of Maryland to conduct certain meetings or portions of its meetings in closed sessions; now therefore be it

Resolved, That the Board of Education of Montgomery County conduct a closed session on
December 9, 2014, from 12:50 p.m. to approximately 2:30 p.m. in Room 120 of the Carver Educational Services Center, 850 Hungerford Drive, Rockville, Maryland; and be it further

Resolved, That the Board of Education anticipates that the closed session will include a discussion of personnel matters, as permitted under Section 3-305(b)(1) of the General Provisions Article and Section 4-107(d) of the Education Article; the review and adjudication of appeals in its quasi-judicial capacity; consultation with counsel to obtain legal advice on those appeals, as permitted under Section 3-305(b)(7) of the General Provisions Article; a discussion of matters constituting an administrative function outside the purview of the Open Meetings Act (Section 3-103(a) of the General Provisions Article); and the Board will publish more detailed Resolutions for Closed Session when particular topics for discussion are identified; and be it further

Resolved, That this meeting shall continue in closed session until the completion of business.

On October 27, 2014, the Board of Education voted unanimously among those present to conduct a closed session, as permitted under the Education Article Section 4-107(d) and General Provisions Article Section 3-305(b) et seq., of the Annotated Code of Maryland. 

The Board of Education of Montgomery County met in closed session on October 27, 2014, from 5:39 p.m. to 6:02 p.m. in Room 120 of the Carver Educational Services Center,
850 Hungerford Drive, Rockville, Maryland, and:

1.      Received legal advice and considered the following Decision and Order involving early entrance to kindergarten:  2014-33, as permitted under Section 3-305(b)(7)  of  the  General Provisions Article  and  in  its  quasi-judicial capacity outside the purview of the Open Meetings Act.

2.      Received legal advice and considered the following appeal involving student discipline: 2014-34, as permitted under Section 3-305(b)(7)  of  the  General Provisions Article  and  in  its  quasi-judicial capacity outside the purview of the Open Meetings Act.

3.      The superintendent of schools provided the Equal Employment Opportunity Report to the Board and the Quarterly Sexual Harassment Report, which is an administrative function and outside the purview of the Open Meetings Act.

4.      The Human Resources Monthly Report was removed from the agenda and was not considered by the Board.

In attendance at the 5:39 p.m. closed session were Christopher Barclay, Shirley Brandman, Judith Docca, Michael Durso, Dahlia Huh, Philip Kauffman, Patricia O’Neill, Rebecca Smondrowski, Ikhide Roland Ikheloa, Laura Steinberg, Suzann King, Joanne Causey, and Patrick Clancy.  At 5:58 p.m. the following staff joined the meeting: Larry Bowers, Brian Edwards, Maria Navarro, Kimberly Statham, Joshua Starr, Karalee Turner-Little, and Andrew Zuckerman.  Patrick Clancy left the meeting at 6:00 p.m.  

Attached is the Construction Progress Report for the period ending October 31, 2014.

This report details expenditures for outside counsel legal fees for Fiscal Year 2015 through the month of August 2014.  A complete set of bills submitted and paid to each firm is available for your review in the Office of the Superintendent of Schools. The charts in Attachment A compare current expenses with those from the same period last year and provide information by month on the following:

• Non-special education legal expenses by firm
• Special education expenses for outside counsel, parent attorney fees, and other miscellaneous charges
• Special education expenses by firm

Attachment B is a list of the categories that reflect the type of legal advice and litigation services being provided to Montgomery County Public Schools by outside law firms for non-special education matters.  The categories in Attachment B are defined as follows:

• Personnel: Equal Employment Opportunity complaints, appeals by personnel
• Facilities:  construction, capital projects, use of facilities
• Procurement:  contracts, bids
• Student:  appeals
• Policy:  development, implementation, interpretation (includes regulations), subpoenas
• Financial:  expenditures, state aid
• Collective bargaining: negotiations, arbitration hearings, grievances
• Miscellaneous:  many categories grouped together under one charge

Non-special Education Legal Expenses

The total charges for non-special education legal expenses in August 2014 were $96,484. The year-to-date total of $186,893 is $5,996 (3.3 percent) higher than the same period in the previous year. 

The Carney Kelehan bill for August 2014 totaled $65,636.  The largest amount was for facilities matters (charged to the capital budget) that totaled $34,693, the largest part of which was related to a facility usage matter ($13,983).  The next largest amount was for policy matters ($14,728), the largest part of which related to requests for student records ($3,613).  Student matters totaled $7,473, the largest part of which related to a student appeal matter ($3,136).  The next largest amount was for procurement matters ($3,769), all of which was related to a procurement contracting matter.  Personnel matters totaled $2,528, the largest part of which related to an appeal matter ($1,542).  The amount for financial matters totaled $839, and miscellaneous matters totaled $1,606.

The Venable bill for August 2014 totaled $4,418. The largest amount was for policy matters ($2,278).  The amount for financial matters totaled $933, and collective bargaining matters totaled $717.  Facilities matters (charged to the capital budget) totaled $490.

The Clancy bill for August 2014 totaled $12,900.  The largest amount was for policy matters ($7,087), the largest part of which related to miscellaneous appeals ($3,525).  The next largest amount was for student matters ($5,813), the largest part of which related to student appeals ($3,938).

The Hogan Lovells bill for August 2014 totaled $8,580, all of which related to policy matters.   

Charges in August 2014 for court reporters, hearing officers, and other legal services totaled $4,950.

Special Education Legal Expenses

Special education legal fees for outside counsel for August 2014 totaled $26,537.  The year-to-date total of $29,883 is $22,657 (313.5 percent) more than the same period in the previous year.  In addition, total year-to-date special education legal costs of $29,883 are $50,309 (62.7 percent) less than the budgeted amount of $80,192 for this time period. 

The Jeffrey A. Krew bill for August 2014 totaled $26,427, all of which related to nine administrative hearing matters.

The Carney Kelehan bill for August 2014 totaled $110, all of which related to an Office of Civil Rights complaint.

For the three months of Fiscal Year (FY) 2015 through September 30, 2014, 8.2 percent of the Division of Construction and Procurement Unit contracts were awarded to minority-, female-, or disabled-owned (MFD) businesses. The total amount of the awards to MFD businesses was $4,515,059. The total value of all capital and operating awards for this period in FY 2015 was $54,866,201.

Both the Division of Construction and the Procurement Unit continue to advertise on eMaryland Marketplace to increase the number of MFD vendor opportunities.  The Division of Construction participated in the 2014 Public School Construction Outreach event hosted by Prince George’s County Public Schools.  The Procurement Unit continues to work with the Montgomery County Department of Economic Development and members of the Montgomery County Interagency Procurement Coordinating Committee to meet and help vendors navigate the procurement process.

The Procurement Unit continues to focus on increasing MFD business participation in the award of contracts for goods and services as part of the strategic plan.  Procedures that have been implemented to increase MFD participation include:

·    Mailing formal bids to all MFD firms that have indicated an interest in receiving them.

• Soliciting both minority and non-minority businesses to submit quotations for purchases less than $25,000.
• Providing technical assistance to MFD vendors.
• Consulting regularly with minority organizations and advertising in minority publications.

The following steps have been implemented to expand outreach and improve procurement   opportunities for MFD vendors:

• The Procurement Unit web page provides information on how to do business with Montgomery County Public Schools.  It includes an electronic online vendor application, events calendar, link to eMaryland Marketplace, and monthly vendor seminar registration information.
• Regular meetings are scheduled with vendors to discuss solicitation, bid, and product processes and concerns.
• Solicitations are sent to community-based associations with a request that the documents be shared with their membership.

The following table provides year-to-date information on MFD participation in procurement contracts awarded by the Procurement Unit. 

The following table provides year-to-date information on MFD participation in procurement contracts awarded by the Division of Construction.  The amount of FY 2015 first quarter contract participation reflects both Maryland Department of Transportation (MDOT) and non-MDOT minority firms.

The next report will be submitted to the Board of Education on February 10, 2015. It will include all bids, quotes, and requests for proposals exceeding $25,000 awarded during the period of October 1, 2014, through December 31, 2014.