The Pay to Participate Committee had their final meeting on Monday, June 14. As a result of the discussions from the two meetings the following recommendation is being made:

1. An annual $25 participation fee will be charged for each student in grades 7th through 12th who chooses to participate in the athletic programs. This is a one-time fee per student per school year.

2. Fees collected from high school students will be deposited to the High School Athletic Department account. Fees collected from middle school students will be deposited to the Middle School Athletic Department Account.

3. The athletic director is to investigate ways to generate additional sources of revenue for the athletic department to assist in keeping the fee at this level.

At the conclusion of the 2004-05 school year the committee will evaluate the success of this recommendation and make adjustments as necessary.

Based on current participation levels, estimated fees to be collected are $7500 for the high school and $5500 for the middle school.

PAY TO PARTICIPATE COMMITTEE MEETING MINUTES
June 7th, 2004 at 7pm in the HS Meeting Room

Present were: Todd Nace, Jeremy Schaal, Dan Litzinger, John Keel, Pam Elder, Mr. & Mrs. Fellure, Claire Leatherwood, Kendall Adkins and Jim Hayes.

Mr. Hayes started the meeting by defining and discussing with the committee the two basic reasons why Pay-to-Participate programs are necessary. One reason is when the Board of Education plans to cut all expenditures for those programs from the general operating funds of the district. The cost of funding the normal Board of Education expenses are then passed on to the participants. Major costs included are coach’s salaries, related benefits (retirement), transportation, and maintenance costs associated with athletics (field maintenance and utilities).

The second reason for Pay-to-Participate programs is when the Athletic Department revenues are not sufficient to meet the needed operation expenses. This has nothing to do with Board of Education operating funds. This situation arises when gate receipts and other miscellaneous sources of income for the day-to-day operations of the Athletic Department are not sufficient to provide for the uniform, equipment, supplies, officials, security, and other miscellaneous needs of the department.

The purpose of this committee is to study the need for fees under the second set of conditions. The Board of Education is still going to continue funding all related expenses that they normally pay for. Currently the Board of Education has had to supplement the Middle School and High School athletic funds on numerous occasions to help them meet their financial obligations. Ideally these two funds would be self-sufficient.

Financial summaries for the high school funds for the past four years were distributed to those present. (They have been enclosed in this mailing for those absent.) Mr. Hayes gave explanations of each of the charts and questions were answered about the sources of revenue and expenses. Fluctuating trends in revenues (specifically gate receipts) was pointed out and spending practices were reviewed. Each of the last four years the Athletic Department has had expenses that exceeded their revenues. The 03-04 expenditures were the least amount spent in the last three years and reflects nearly $8000 in reduced spending from the previous year. If the trend of the last four years continues, the 04-05 school year could be one in which overall receipts will drop by over $10,000. We will still have basic needs for each of our sport programs in the coming year but will continue to look for ways to cut expenses.

Results of the Internet survey and student surveys were also reviewed. Copies of the Internet results were distributed (copies enclosed for those not present.). The over all consensus from the people that have responded to the Internet survey was that they are willing to pay a fee to participate in Athletics. Claire Leatherwood and Kendall Adkins reviewed the student surveys and expressed the same conclusion. The surveys also show the respondents would like a discounted fee for multiple sport participants. With respect to the amount of fee participants would be willing to pay before considering not to participate the most popular range was $50-$74.

Mr. Hayes shared with the group research he had done with respect to the amount of revenue could be produced with participation fees. During the 03-04 school year there were 299 students who participated in high school athletic programs. If you charged fees of $40 for their first sport, $25 for their second sport and no fee for a third sport, there is the potential of generating nearly $15,000 of additional funds. If the fees were $30/$20/0, the fees could produce nearly $11,000 of additional funds. At the Middle School level, based on 03-04 participation, an additional $6500 could be generated by charging participation fees of $25 for the first sport, $15 for the second sport and no charge for the third sport.

All present agreed that a proposal to charge nominal fees for next year would be appropriate with a focus on keeping them as low as possible yet at the same time accomplishing the purpose of making the athletic department self sufficient. Special attention should be given to setting a fee that will not eliminate participants due to financial hardships. It was also mentioned that coaches who currently require athletes to purchase items that become personal property of the athlete at the end of the season should re-evaluate their needs for having these items. Are they items that are absolutely necessary or are they just extras? If necessary items, then they should work on making them a part of their budgeted spending and have them become school property if they are items that can be re-used in future years.

The meeting adjourned at approximately 8:20. Our next meeting will be Monday, June 14 at 7:00 PM in the high school meeting room. A definite decision with respect to fees, if any, will be made at this meeting. If fees are to be charged, the amount of the fee, discounted fees, fee waivers, collection procedures and refunding of fees will also be discussed. Please mark you calendars and plan to attend. Feel free to share this information.

If you have any questions, you may call Mr. Hayes at 740-983-5020.