Saturday, June 21, 2008

Detroit schools' layoff target balloons to 1,400


Jennifer Mrozowski / The Detroit News

DETROIT -- Detroit Public Schools must reduce its staff by nearly 1,400 people to help decrease its massive budget shortfall, according to a draft budget document obtained by The Detroit News.

The June 13 document by Chief Financial Officer Joan McCray gives an indication of some of the deficit reduction strategies being considered. The district has just weeks before the end of the fiscal year to eliminate a projected $408 million shortfall for fiscal year 2009 that was published this week as part of a draft budget. That proposed reduction would eliminate nearly 9 percent of the district's total staff.

A public hearing on the budget is at 11 a.m. today, and board members also are expected to discuss the shortfall during a regular board meeting at 6 p.m.

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Officials spent part of Wednesday doing damage control, explaining that the draft budget on display Monday did not include deficit reduction plans and made the projected shortfall appear worse. Under Michigan law, school districts must adopt balanced budgets or get state approval for a plan to eliminate a deficit to avoid state oversight.

"I appreciate them trying to be transparent," board President Carla Scott said of the district administration. "But they're scaring the staff. They're scaring the public. We have a much better handle on this than they are showing by not explaining."

The district, which employs nearly 16,000 people, has not made any decisions on which positions would need to be cut, said district spokesman Steve Wasko. However, the district has previously outlined in other documents that 818 of those positions under consideration for reduction would come from the teaching ranks.
Enrollment dropping

Officials have said that staff must be reduced to match declining enrollment, which is expected to fall by 8,129 students to 98,356 students this fall. Enrollment has fallen precipitously in the last decade from 167,264 students in 1999-2000 to 106,485 this school year.

The number of teachers has fallen from more than 8,600 in 1999-2000 to 6,348 in 2007-08, according to figures provided by the district, but documents and public statements by McCray suggest the school system has not reduced staff in accordance with the plummeting enrollment for several years. Board members, however, have criticized Superintendent Connie Calloway's administration for neglecting to lay off the appropriate number of staff members this year, contributing to the shortfall.

While not offering specifics on who should be laid off, the June 13 document by McCray shows that 300 staff members received layoff notices May 1 and another 518 will receive notices Aug. 27. The document says another 578 staff members "must be noticed to balance the budget." The salary savings would be $221.4 million, the document said.

Teachers plan to protest the layoffs and poor classroom conditions before today's board meeting.

"We are rallying for our schools," said Detroit Federation of Teachers union president Virginia Cantrell. "We are asking the district to rescind all of the layoffs due to the fact that we had oversized classes all year. We are asking the district to restore art, music, science and gym. And we are asking for books and supplies to be in every classroom when school opens."

The district should not be considering such drastic teacher cuts because at least 300 to 400 teachers are retiring or leaving the district, which will help reduce the shortfall, Cantrell said. The DFT represents 7,949 members, of which 5,880 are classroom teachers.
Budget is work-in-progress

To underscore that the budget is still a work-in-progress, McCray sent a memo to stakeholders Wednesday, saying the district is investigating using grant funding to reduce the $480 million shortfall, as well as reduce expenditures through the possible staff cuts. The projected budget for fiscal year 2009 is $1.37 billion.

"The budget document as it stands reflects an extremely preliminary indication of where the district's financial status stands and where that will take us if no adjustments are made," Wasko said. "The cover includes twice the words 'Draft' and 'Proposed.' That's what this is. There is a process to be followed between now and June 30 -- the close of the fiscal year."

Any updated recommendations will be made available for public viewing, he said.

"The district's goal is to adopt a balanced budget, and to do so in a way that does not encumber the district in future years with inflated enrollment numbers, failure to layoff staff as necessary, or the inability to provide textbooks for our children," Wasko said.

You can reach Jennifer Mrozowski at (313) 222-2269.

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