Post on 15-Dec-2015
FY 2013 Budget PlanningItem Description Worst Case Best Case
FY 2013 DCSD State Reductions $7.5 M $0.00 M
FY 2013 PERA Increase $2.2 M $2.2 M
FY 2012 One Time Use of Reserves $11.7 M $11.7 M
FY 2012 Reallocated Pay for Performance Budget $4.2 M $4.2 M
Total FY 2013 Budget Reduction/Reallocation $25.6 M $18.1 M
2
Good News – JBC Recommends Maintaining PPR – DCSD Adopting Best Case
Item Description Best Case
FY 2013 DCSD State Reductions$0.0 M
FY 2013 PERA Increases$2.2 M
FY 2012 One Time Use of Reserves (Black Budget – Last Spring) $11.7 M
FY 2012 Negotiated Reallocation Pay for Performance Budget = No Furlough Days (Black Budget)
$4.2 M
Total FY 2013 Budget Cuts and Reallocations $18.1 M
3
4
Goals in Balancing the Budget• Prepare for the future – every DCSD student
prepared to compete on world stage for any college or career of their choice
• Improve quality of life for employees
• Continue to improve the District’s fiscal health
5
FY 2013 DCSD Budget PlanElementary SBB Reduction ($0) $0
Middle School SBB Reduction ($50) $0.5 M
HS SBB Reduction ($225) $3.6 M
Central Administration Reductions $1.0 M
Capital Reallocation/Reduction $3.4 M
Cost of Business Budget Opportunities (Central Admin.) $6.0 M
Negotiated Reductions $2.0 M
Contingency Reduction/Reallocation $1.6 M
Total FY 2013 Budget Reduction and Reallocations $18.1 M
6
SBB Improvement
District recommends using $3.2 M of one-time (fund balance) to our schools to improve SBB reductions for FY 2013.
ES net SBB $0 SBB + $50 = +$50MS net SBB -$50 SBB + $50 = $0HS net SBB -$225 SBB + $50 = -$175
7
Other Considerations
• $3.80/student Increase from CDE– $233,000
• Additional School Allocations– $300,000 in more RTI Allocation– $578,000 in Fee Revenues • $6/student – Elementary: $208,000• $11/student – Middle School: $106,000• $16/student – High School: $264,000
9
Improve Quality of Life for Employees
• 1% Raise ($2.8 M on-going)• 1% Retention Bonus ($2.8 one-time)• Benefit Improvements
– Add Legal and Liability Coverage– Add Short Term Disability Insurance– Add Career Ladders (current employees) & Market Pay (new employees)– Add Improved Pay for Performance – Add one non-contact, contract day for Professional Development– Improve Culture and Climate (morale) – through a commitment to the
attributes of healthy organizations– PERA increase covered by District for all employees– And MORE
10
Details Regarding 1% Pay RaiseTotal District Cost of 1% Increase is $2.8 M
District Proposes to Reallocate Dollars to Fund a 1% Raise for All Employees.
DCFT Example in District Proposal:– Phase out of Knowledge Level Advancement (KLA)– Phase out of Extended Service Severance (ESS) – Phase out of Longevity
11
Details Regarding “Retention Bonus”Recommendation is to use $2.8 M for a 1% “Retention bonus” for all employees who return FY 2013 contracts or commit on time.
$6 M Cost of Business reduction will raise the unassigned fund balance from $15.1 to $21.1 if that money is not used this year (we start using it next year for the cut).
We would like to use $2.8 M of the $6 M to pay for the retention bonus.
12
$5.6 M for Employees
1% Raise ($2.8 M) + 1% Retention Bonus ($2.8 M) =
$5.6 M Reallocated to District Employees for FY 2013
13
District Proposes a Healthier Culture and Climate to Improve Morale
(Quality of Life)
Commitment to the attributes of healthy organizations:– Expectation of positive, accurate communication
to schools and community– Protect the educational environment– Commitment to freedom and choice for
employees
14
Budget and Negotiations Recommendations Match Goals
• Prepare for the future – every DCSD student prepared to compete on world stage for any college or career of their choice
• Improve quality of life for employees
• Continue to improve the District’s fiscal health