FY 2013 Budget Recommendation 1

FY 2013 Budget Planning Item Description Worst CaseBest Case FY 2013 DCSD State Reductions $7.5 M$0.00 M FY 2013 PERA Increase $2.2 M FY 2012 One Time Use of Reserves $11.7 M FY 2012 Reallocated Pay for Performance Budget $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

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 4

FY 2013 DCSD Budget Plan Elementary 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 5

SBB Improvement District recommends using $3.2 M of one-time (fund balance) to our schools to improve SBB reductions for FY ES net SBB$0 SBB + $50 = +$50 MS net SBB -$50 SBB + $50 = $0 HS net SBB-$225 SBB + $50 = -$175 6

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 7

DCFT Public Negotiations 8

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 9

Details Regarding 1% Pay Raise Total 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 10

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. 11

$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

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 13

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 14

Questions? 15

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