News Release
January 27, 2006
Superintendent Michael Bennet Presents Proposal For Closing $16.4 Million Budget Gap, Including 15 Percent Administrative Cuts, 2.4 Percent Reduction For Schools
Central departments would be reduced by 15 percent and school-level expenses would be reduced by 2.4 percent under a proposal presented today by Superintendent Michael Bennet to the Board of Education to close a projected $16.4 million budget gap.
The reduction in central department expenses would save $7.5 million for the general fund and the school savings would generate $5.8 million. However, $2.2 million of the school savings would be set aside in a fund to address teacher staffing issues.
The proposal also makes resources available to launch major components of The Denver Plan, including after-school tutoring, summer school for 8,000 students in 2007, formation of new Instructional Support Teams, and ongoing and intensive professional development for teachers, among many other elements. One Denver Plan proposal, the hiring of Intervention Specialists to work with students who struggle with math and reading, is not in the spending plan.
"This budget represents a major effort to directly align the district's resources with the vision embedded in The Denver Plan," said Superintendent Bennet. "At the same time, we have been able to close a significant budget gap. There are some painful steps ahead in making reductions in central offices and in schools, but this plan begins with what's needed to boost achievement and then strategically organizes our resources to ensure those steps are taken."
A revised version of The Denver Plan (posted in its original form on the district's website at thedenverplan.dpsk12.org ) will be presented to the Board of Education at its study session from 4:30 to 8:30 p.m. Thursday, Feb. 2.
Superintendent Bennet also included in the proposal a first-of-its-kind plan to allow schools to share in revenue generated by enrolling students who are new to Denver Public Schools. Schools would be allowed to keep about 50 percent of the per-pupil operating revenue above what's needed to provide direct services for the new students.
The budget recommendations were delivered in a day-long budget retreat today (Friday, Jan. 27). Discussions about the budget-balancing formula now, months ahead of formal adoption, will allow schools to post teacher openings and hire staff at the same time that is competitive with other metro Denver districts. Being in the teacher marketplace at the same time as suburban counterparts represents the first time ever in the modern era for Denver Public Schools.
Other projected savings to close the gap include continuing prior year maintenance reductions ($3 million); adjusting grade configurations at several elementary schools that were expanding to K-8's ($262,000); increasing student athletic fees from $60 to $85 per student (generating $100,000 in new revenue); reducing the number of assistant principals in the five smallest high schools ($455,000); reducing the amount of supplemental resource allocations in the smallest elementary schools ($240,000); and capturing savings from the attrition of paraprofessionals ($2.3 million).
Andre Pettigrew, Assistant Superintendent for Administrative Services, explained that many paraprofessionals are likely not going to meet federal No Child Left Behind (NCLB) requirements and the corps of paraprofessionals, as a result, is likely to be dramatically smaller next year. More than 600 paraprofessionals have not met the "highly qualified" definition of NCLB, said Pettigrew, "and I don't believe we can replace the ones we are going to lose."
The district currently anticipates $596.5 million in revenues for the 2006-2007 school year budget, said Chief Financial Officer Velma Rose. The $16.4 million shortfall projection is based on the assumption that the merger between the DPS Retirement System and the state's Public Employees Retirement Association will not occur this year, boosting district costs this year by $1 million. But the spike in utility prices from a few months ago has eased, meaning the district can plan on spending $3 million less than earlier forecast and the projected impact of Referendum C (a statewide ballot measure approved by voters in November) could yield an additional $3.5 million for the base state funding to Denver Public Schools.
"Obviously, this is not an easy day for any of us, in making these recommendations," said Board member Jill Conrad. But the proposal, she added, is "very thoughtful" and "maintains the integrity of where we are going with The Denver Plan - This is the best possible scenario."
The budget shortfall assumes traditional funding of compensation packages for labor union agreements, including fully funding the teacher salary schedule and providing a salary increase based on established inflation rates.
Projections for enrollment in 2006-2007 show a reduction of 267 students, down from 73,018 (grades ECE-12) to 72,751.
For more information, contact the DPS Office of Communications, 720-423-3414.