BENTE RCSD Budget Analysis Final

8/7/2019 BENTE RCSD Budget Analysis Final

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Rochester City School DistrictFY 2011-12 Proposed Budget

BENTE/AFSCME Analysis April 5, 2011

Additional Financial Flexibility/Revenue

Additional State Aid: New Yorks Governor and Legislature have agreed to a statebudget that restores $3.5 million in aid to the District above what was projected in the

Proposed Budget. Superintendent Jean-Claude Brizard says he expects to use the funds

to prevent some of the 900 planned job cuts, but has not released details on what

proposed cuts will be prevented. How is the 3.5 million dollars that has been restored

going to be allocated?

Proposed Budget Reserve: The Proposed Budgets $80 million deficit includes an $8.1million Budget Reserve. This is unnecessary and has the effect of exaggerating the

deficit.

Fund Balance: The budget states that the fund balance is below acceptable risk levelsand cannot be used to meet future deficits. According to the Proposed Budget, the

District will end FY 2010-11 with $43.4 million in unreserved fund balance, including

both designated and undesignated funds, which is equivalent to 6.4 percent of the fiscal

year 2011-12 proposed expenditures. The District could spend approximately $15

million of its unreserved fund balance and still retain a fund balance by FY 2011-12 year-

end of 4 percent of adjusted total expenditures. There is reference to a New York State

law that appears to set a maximum cap of four percent on school districts fund

balances.

$15 Million of Unreserved Fund Balance Available in FY 2011-12

$ Millions

FY 2010-11 Year-End Unreserved Fund Balance $43.4

Proposed Budget FY 2011-12 Total Expenditures 677.7

Unreserved Fund Balance % of FY 2011-12 budget 6.40%

Adjustments to FY 2011-12 Total Expenditures:

Additional state aid 3.5

Eliminate Proposed Budget Reserve -8.1

Use of Portion of Unreserved Fund Balance 15.0

Adjusted Total Expenditures FY 2011-12 688.0

Remaining Unreserved Fund Balance Year-End FY 2011-12 28.4

Fund Balance % of Adjusted Total Expenditures 4.13%


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For the fiscal year 2011-12, pension contributions increase by $4.8 million due to TRSand ERS rate increases. Are these rate increases final, or estimated?

The State Retirement Incentive requires payments of $5.8 million. Will the RetirementIncentive program generate any savings for the District in FY 2011-12?

Unemployment compensation costs increase $4.3 million because of layoffs. If the $3.5million in additional state aid (as well as some of our proposed sources of revenue are

enacted) is used to prevent some of the proposed layoffs as the Superintendent has

stated, what savings will flow through to this item?

Charter School Tuition increases by $6.3 million, or 22 percent, from the current year.The District projects charter school enrollment growth of 457 students. [There actually

are conflicting cost numbers for this item, between the budget table on page 3-20 and

the narrative on page 3-23. The numbers here are from the table.] What are thecorrect numbers, and is this estimate inflated?

Health insurance costs actually decrease because of a reduction in staff, but increase asa percent of payroll from 9.7% to 11.65%. The Proposed Budget states that the increase

is due to the Affordable Care Act (ACA, national health care reform). The increase

attributable to ACA, however, is only 1 to 2%. How much of this expense was offset by

a reduction in staff and an increase in new hires paying 15%?

Disproportionate Cuts to Employees

The Proposed Budget meets the $80 million estimated shortfall with $62 million in savings from

reductions in force, or 77.5 percent of the total, compared to just $18 million from changes in

programs. Employee compensation, including benefits, makes up 65.5 percent of total

expenditures. Why are budget cuts focused disproportionately on employees?

The following table shows position cuts for teachers, civil service, administrators, and other

positions.

All Schools Positions FY 2009-10 to FY 2011-12

Actual Amended 2009-2010 2009-2010 Proposed 2011-2012 2011-2012FY 2009-10 FY 2010-11 # Change % Change FY 2011-12 # Change % Change

Teachers 3,394.9 3,280.5 -114.4 -3.4% 2,735.7 -544.8 -16.6%

Civil Service 696.6 698.2 1.6 0.2% 519.2 -179.0 -25.6%

Administrators 230.4 215.4 -15.0 -6.5% 187.2 -28.2 -13.1%

Teaching Assts 174.0 191.0 17.0 9.8% 100.6 -90.4 -47.3%

Paraprofessionals 531.5 492.8 -38.7 -7.3% 427.8 -65.0 -13.2%

Hourly Teachers 0.0 0.8 0.8 NA 0.0 -0.8 -100.0%

Total 5,027.4 4,878.7 -148.7 -3.0% 3,970.5 -908.2 -18.6%


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The table shows Civil Service positions would decline by 179 FTEs, or 25.6%, in the fiscal year

2011-12. Only Teaching Assistants would face a greater percentage reduction (47.3%).

There are 26 additional FTEs in the Proposed Budget not included in the above table. The Board

of Education includes 20 FTEs and the Superintendents Office has 2 FTEs. As previouslyexplained, the bargaining unit that has been hit the hardest in the past three years is BENTE,

decreasing by 7%, while ASAR has increased 3%, SEG has increased 2%, the Board of Ed

employees has increased 10%, and RAP has increased 2%.

We are scheduled to meet on Friday, April 8th

to discuss the budget. Two months ago, we

submitted a list of questions that have yet to be answered. As requested, we are submitting an

additional list of questions in advance of our meeting on Friday, so that the District can be

better prepared.

It is our hope that Friday will be a productive session.

Respectfully Submitted,

Daniel DiClemente, President, BENTE/AFSCME Local 2419

Question asked via e-mail on March 30, 2011: Please submit a list of all positions (not the

names of the individuals affected which would require help from Civil Service) that are being

eliminated from the BENTE bargaining unit by title, location, and whether or not the position is

occupied or vacant.

Previous questions asked via e-mail on February 24, 2011:

Provide the math that the District used to determine an $81million deficit If contract transportation is cut, will the work performed by contractors shift to District-

owned transportation? Would this increase walking distances for students? By how

much?

How much savings was realized due to the retirement incentive last year and is thatnumber reflected in wages and benefits (i.e. wages and benefit costs are reportedly

increasing $11 million and $26 million due to raises and an 11% increase in health care

costs. But isnt that cost offset by the fact that there are less employees, and the newer

employees are making less in wages and contributing 15% toward health benefits?)

Provide a breakdown of savings from the retirement incentive by bargaining unit


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How much of the cost for buses ($0.9 million) is reimbursed from the state and wouldthis create a safety hazard by not rotating out old buses?

How much money has been spent on agency clerical this year versus how much wasbudgeted for? If reducing agency clerical 25% equates to $0.45 million, then the District

is budgeting $1.8 million, yet only $600,000 is earmarked under this category in the2010-2011 RCSD budget book.

Explain, specifically, what would be reduced under reduce Prof & Tech? Provide the Union with a contingency plan for position restorations if the RCSD receives

more revenue than anticipated

How much money did the District pay Aramark in the 2010-2011 budget year and howmuch of the Districts money is earmarked for Aramark in the 2011-2012 budget?

Provide a breakdown of vacancies by bargaining unit Provide a breakdown of cost savings, by bargaining unit (including the Superintendent

and SEG), for furloughs and wage increases, as opposed to grouping them into a non-

teaching employees category

Does the possibility of a 4-day work week in July and August mean that the employeeswould work more hours during the four days (i.e. 40 hour employees working four 10hour work days)?

What is Capital Outlay?As soon as we obtain the answers to the questions listed above, we will convene a meeting of

the Executive Board so that I am able to effectively convey the fiscal condition of the District

and the options available.

We will then inform the Board of Education of all suggestions and or options that we would bewilling to consider. Thank you for allowing us an opportunity to participate in this collaborative

process.

Respectfully Submitted,

Dan DiClemente, President, BENTE/AFSCME local 2419

The Support Staff that Supports Students

BENTE RCSD Budget Analysis Final

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