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FY 2013 Budget Recommendation

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

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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

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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

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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

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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

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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

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DCFT Public Negotiations

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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

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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

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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.

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$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

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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

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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

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Questions?

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