Frequently Asked Questions #1 Voluntary Staff Contract Revision/Salary Reduction

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Aldous Wilkerson
6 years ago
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Frequently Asked Questions #1 Voluntary Staff Contract Revision/Salary Reduction 2008-2009 1. Do we have a fund balance?

This is because the financials will reflect the full payment of the $6m bridge loan and also, $3.

Where does the Education Foundation fit into this?

The foundation is working to secure sponsors for events like Math Olympiadd and Science Fair as we speak.

1 Frequently Asked Questions #1 Voluntary Staff Contract Revision/Salary Reduction Do we have a fund balance? The district expects to end the school year with a negative fund balance, based on the pre audit reports. This is because the financials will reflect the full payment of the $6m bridge loan and also, $3.6m state revenue lost due to not meeting the projected ADA and the state projections of the Legislative Budget Board that we planned for. 2. Where does the Education Foundation fit into this? The district is working with the foundation board, the Chamber of Commerce and others to solicit additional funding for programs and initiatives that make a difference in LISD. The foundation is working to secure sponsors for events like Math Olympiadd and Science Fair as we speak. Look on the district website for the launch of the district wide Light a Fire for Math and Science campaign. The foundation will still provide teacher grants. 3. How is the conservator paid? His fee is paid from local or 199 or local funds. 4. How are we paying the lawyer that was hired to investigate Dr. Lewis? Again, legal fees are paid through local or 199 funds. 5. What about additional insurance coverage we took out because of our raise can there be a coverage roll-back? We must follow IRS regulations regarding changes to pre tax benefits. A complete written document will be issued to you related this.

2 6. Why did we hire new positions at Admin when our enrollment numbers had not been confirmed? The TEA Audit recommended hiring additional staff in the position of a budget analyst, fixed asset manager and bilingual coordinator. The foundation position is also one that plays an increasingly important role in the district as we seek non-traditional funding for schools. 7. Will we continue with the Texas Instruments agreement with the High School? Yes, this expenditure is a part of the high school allotment fund, part of our foundation school formula and school improvement funding. 8. Will we drop Strategic Planning as a result of this? No. This is more important now than ever. The Strategic Planning will allow the district to establish priorities for programs and education of students in this community, which will then drive future spending decisions at all levels. 9. How will the district plan for better finances and future pay increases? First, continue to follow the best practice guidelines issued by the TEA. Second, by continuing to establish the common aspirations of the community for its schools through strategic planning, and finally, through the citizen budget oversight committee. We will also work to increase student enrollment. 10. What areas will LISD cut for the needed savings? Each department and campus in the district is looking to save money from 199 funds. These savings will include items such as staff cell phones being paid for by each employee personally, reducing 199 supply budgets, eliminating all travel, and implementing additional cost saving measures as identified.

3 11. Severance package in case of RIF? This is not an item that has been discussed, as the district is only considering cost saving measures now, and not recommending a RIF at this time. 12. Advanced degree/additional pay? Some employees have indicated a desire to return their stipend for advanced degrees. That is a personal decision and will be handled on a case by case basis. The Board approved salary schedule has included pay rates for Master and Doctoral degrees for many years. The proposed salary revisions only include base salaries unless the employee chooses otherwise. 13. If a RIF occurs will we lose pay raise in September? If a RIF occurs you will not lose your September pay increase. If staff decides to forgo a portion of their pay increase, you will not lose the pay you received in September. No salary reduction will occur until October. 14. Will the district reinstate the 2.5% raise next year? Every effort will be made to compensate LISD employees at the most competitive levels. These are uncertain economic times for our country and school districts everywhere are evaluating the steps they need to take to meet accountability standards, remain competitive in pay, and of course keep the main focus student achievement. 15. What happened to the money Dr. Lewis said was set aside for raises last year? That money was based on funds received from the state based on ADA. Now that the ADA was not what was projected, there is a reduction in funds.

4 16. How many district employees have cell phones? There are 60 cell phones across the district. 17. Will a RIF come in the future if a salary cut takes place? There are many elements to a decision for a RIF. As our economy goes through times like we have lately, school districts everywhere are trying to predict the impact on public schools. A RIF is certainly a last step for any school district. 18. Can the district vehicles (SUV s) be sold at auction? They could possibly be sold at auction. However, the vehicles are a part of a cost saving strategy implemented by the district to reduce travel expenses. There are rules we are governed by for sale of real property in surplus. 19. Will teachers get their step increase back if they give their pay raise back? No. 20. Are the freezes the steps? No. 21. Who monitors the curriculum staff on the campuses? Campus Principals and the Director of Teaching and Learning work together to assure the best service possible for all campus staff. 22. Is yearly attendance impacted by the number of student suspensions? Yes. Principals receive a monthly suspension report by campus which helps with monitoring student attendance. If a student is assigned to JJAEP or DAEP attendance is taken and there is not a direct financial impact. There is also no financial impact for In School Suspension.

5 24. What if we do not reach consensus? The Board of Trustees will hear a preliminary report about the district budget at the meeting on October 14, At that time, Dr. Lewis will make recommendations for savings. The Board will then establish the direction it would like to see the district take in this situation. There is a called meeting on Saturday October 18, 2008 at 1:00 p.m. 25. Can we release the conservator? No. He has been appointed by the TEA, and will be here until the TEA determines he has completed his work. 26. Can a staff member elect to give up their entire pay increase? Yes. That is a personal decision each of us is able to make. 27. Can we consider a four day work week? Yes. If the Board and Superintendent request it, we can reconvene a committee and discuss this further. There are school districts in many areas who are currently considering this cost saving measure. 28. Can staff elect to give up longevity pay? Yes. That is a personal decision each of us is able to make.

Summary of Budget Assumptions

# Funding Formula Summary of Budget Assumptions 1 Assumes House Bill 21 Austin Yield Change $ 99.41 2 Assumes House Bill 21 Per Capita Rate Change $ 200.00 3 Property Tax 4 Maintenance & Operations Tax