April 15, 2010 1. In seeking solutions to an extraordinary set of financial and academic challenges, our priority has always and will always be to maintain.

April 15, 2010

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In seeking solutions to an extraordinary set of financial and academic challenges, our

priority has always and will always be to maintain the quality of core instructional

services for students.

The solutions contained herein have been structured to put the District in the best possible position to support schools and

students and meet our overarching goal of regaining accreditation.

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Balance expenditures and revenues Align resources to support principals,

teachers and students Promote more school autonomy and

innovation Increase academic initiatives

◦ Curriculum◦ Library Resources

Raise expectations and accountability across the board

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Declining SLPS enrollment, although slowing Increasing Charter school enrollment Flat sales and property tax collections Reduced state aid: -4% ($4.2M) Maintaining desirable Pupil Teacher Ratio Escalating medical benefit costs: +16.9% High fixed costs with excess capacity High magnet transportation costs

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Layoffs

Unpaid Leave

Health Benefits:-Reduced/eliminated-Increased employee

contribution

Increased employee pension

contributionsSchool

Closings

Full day kindergarten charges

Transportation Reductions

Pay Freezes

Furloughs

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Omaha:Eliminating

224 positions.

Indianapolis:Eliminating 300 teaching positions and another 100

staff positions.

St. Paul:Facing a $25 million

shortfall, cutting 267 staff positions, including 143

teaching positions.

Des Moines:Proposing elimination of 60 full-time

positions, library services, elementary art, C-team athletics, & reducing

number of instructional days.

Kansas City:Closing 28 schools

and eliminating 700 of 3,000 jobs,

including teaching positions.

Milwaukee:Proposing reductions

including 397 teaching positions.

Wichita:Considering eliminating 320 full time

positions and closing alternative schools.

7Note: Above enrollment data reflects K-12 students only.*

* Projected

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GOAL: Balance GOB

Expenditures with GOB Revenues

FY2011 FY2010

Revenue $278.7M $297.0M

Payroll Expenditures $218.2M $216.0M Non-Payroll Expenditures $115.0M $104.0M Expenditure Projection $333.2M $320.0M

Reserve 3.0M -

Surplus/(Deficit) ($ 57.5M) ($ 23.0M)

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GOAL

2010-2011

Proposed Reductions

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‣Salary Reductions/Incentives $1.5M◦ Shift select 12 month employees to 11 month

Staff Reductions (490 positions) $33.8M

Change to an attendance staffing model Reduce non-highly qualified staff (144) Continuing Substitutes (80) Provide retirement incentive ( 632 eligible) Reduction in force layoffs will be considered only after

exhausting all other options Present - Teacher /Student Ratio is 13.5 to 1 Proposed - Teacher /Student Ratio is 16.2 to 1 State - Teacher / Student is 17

to 1 11

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Classroom Teacher Positions 226 Substitute Teachers Positions 80 School –Site Support Staff 130 Administrators 24 Central Office Staff 30

TOTAL 490

Total Workforce Related Options:

₊Staff Reductions: $33.8M₊Salary Reductions/Incentives: 1.5M

₊Furloughs: 3.0M$38.3M

‣Furloughs (5 days @ $600k/day) $3.0M

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Reductions identified and incorporated into Central Office 10/11 Budgets $8.0M◦ March 22 & 23 Budget Meetings, and

Executive Leadership Team Reductions

‣Energy Management Reductions $0.5M◦ Energy Management/Utilities

School Closings/Consolidations $0.8M

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Gallaudet Recommendation – Close the building

◦ Children will be assigned to the appropriate school that provides the necessary services to continue with their program.

◦ Children will be offered seats to attend Mullanphy Investigative Learning Center; Ames Visual and Performing Arts; McKinley Classical Junior Academy; and Gateway Institute of Technology.

◦ Cost savings = $298,266◦ Decommissioning/moving cost = $80,000 (one time cost)

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Bunche International Studies Recommendation - Close the building

◦ Reconfigure Soldan International Studies for grade levels 7 thru 12.

◦ Create one “campus” that will expose the students to international studies from middle school through high school

◦ The students advancing to sixth grade in FY10-11 at Bunche will remain in their current school or be offered other magnet choices.

◦ Cost savings = $388,968◦ Decommissioning/moving cost = $65,000 (one time cost)

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Cleveland NJROTC at Pruitt Recommendation– Close the building

◦ Children assigned to this school will relocate to the space that was once occupied by the International Welcome Center at Central VPA

◦ The NJROTC program will remain a focus◦ Cost savings = $339,075◦ Decommissioning/moving cost = $75,000 (one time cost)

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Alternative Education South @ Lyon – Recommendation - Close the building ◦ Students assigned to this school will relocate to Stevens

Middle School◦ Cost savings = $207,130◦ Decommissioning/moving cost = $65,000 (one time cost)

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Ford Branch Recommendation – Close the building

◦ Children that occupy this building for after school care will attend Ford Elementary School

◦ Cost savings = $36,000◦ Decommissioning/moving cost = $30,000 (one time cost)

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Fresh Start @ Turner Recommendation - Close Turner

◦ The students and staff from Fresh Start @Turner can physically be housed in the Sumner facility based on building capacity and available space.

◦ English wing is not being used daily only for ACT testing and/or tutoring as needed.

◦ There are 12 large classrooms and 2 small classrooms/offices.

◦ Girls restroom and one Unisex restroom on upper level; Boys restroom and one men’s and one women’s restroom on lower level.

◦ Cost savings = $50,000◦ Decommissioning/moving cost = $30,000 (one time cost)

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Total Non-Workforce Related Initiatives:

₊Central Office Reductions: $8.0M₊Energy Management: 0.5M

₊School Closings/Consolidations: 0.8M₊VICC Special Ed. Audit: 1.5M

₊Bond/Hold Harmless/Pension Reserve: 8.5M

$19.3M

VICC Special Education Excess Costs $1.5M◦ IEP Audit

‣Bond, Hold Harmless, Pension Reserve 8.5Mo Bond revenue for capital related expenditureso Cover portion of deficit with add’l state funds if “held

harmless”o Pension reserve adjustment

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$8.0MCentral Office

Reductions

0.8School Closing/

Consolidation

Energy Mgmt. & VICC

2.0M

Staff Reductions33.8M 1.5M

Salary Reductions & Incentives

Non

-Wor

kfor

ce =

19.

3M

Workforce = 38.3M

8.5MBond/ HoldHarmless/Pension

3.0MFurloughs

+57.6M(Reduction

s)

-$57.5M(overspen

d)NET = +.$01M

FY2011* FY2010 Proposed Projected

Revenue $278.7M $297.0M

Payroll Expenditures $180.0M $216.0M Non-Payroll Expenditures $ 95.7M $104.0M Expenditure Projection $275.7M $320.0M

Surplus/(Deficit) $ 3.0M ($ 23.0M)

* Submitted for April 29, 2010 Board Approval

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Renegotiate contracts $ 2M Employee Benefit Participation $1.4M

2,400 staff x$600/yr

Cooperative purchase agreements $0.5M Reduce PTO Days $455k/day

◦ PTO payout savings: $270k/day◦ Substitute savings: $185k/day Winter/Spring Break Closure $26k/day o PTO payout savings

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FY2007 FY2008 FY2009 FY2010 * FY2011*

REVENUE 354.4 340.1 311.1 297.0 278.7

EXPENSE 342.6 338.9 344.2 320.0 275.7

Surplus/Deficit 11.8 1.2 (33.1) (23.0) 3.0

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* Preliminary estimates based on available state and local information which is subject to change

General Operating Revenue : $276.4M

Assumptions State formula funding flat (per DESE) Enrollment declines not as steep as previous

years Economy shows slight but slow improvement Property taxes 2% growth (re-assessment year)

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ACADEMICS College Summit (269K) St. Louis Police & Firefighter

program (35K ) Ranken program (45K) Field trips (300K) Sports activities (350K) High school choir risers

(30K) Marching band percussions

w/ carriers (30K) Replacement of middle

school novels (15K) Erate payments and match

money (2.9M)

Expansion of the Renaissance Learning program (110K)

High school textbook adoption, social studies, math, art, & science (350K)

High school marching band uniforms (100K)

New Library Books (500K) Purchase of new kilns (60K) Middle school textual

adoption, foreign languages & science (246K)

1.6M - Window replacements after lead removal

200K - Teach for America Contract