Wayne County Community College Michigan

DPS budget plan cuts worker pay 10%, reduces class sizes

Detroit — Spending and staffing are being cut under Detroit Public Schools' proposed 2011-12 budget to create a leaner school district that can live within its means.

DPS plans to institute a 10 percent wage cut for all DPS employees, a staff reduction of 853 positions and the sale of $200 million in bonds to trim the district's deficit from $327 million to $127 million.

The three measures were outlined Thursday in the district's new school year budget, which takes effect July 1.

Overall, the plan aims to cut $231 million in expenses at the district, which under the control of state-installed Emergency Manager Roy Roberts is faced with balancing the books by 2016.

The budget, which will be presented at a public hearing Monday and must be finalized by June 30 per state law, reduces class sizes at most grade levels, expands pre-kindergarten programs and directs 90 percent of resources to school and related programming and operating costs, DPS officials said.

It's based on a reduced student population of 66,360 students — 60,568 general education and 5,792 special education students. Enrollment at DPS was 73,000 students last year. It was 162,000 a decade ago.

With the state foundation grant of $7,390 per student, revenues are projected at $1.237 billion, while proposed operating expenses are expected to be $1.037 billion.

The proposed budget reduces the district's debt service, giving it more cash for operations. Debt service payments will go from $55.7 million last year to $41.7 million in 2012.

In a statement, Roberts said the budget drives more resources directly to classrooms to support the district's rigorous five-year academic plan.

"This budget will require us to live within our means while supporting the educational plan that's been put in place," he said.

"We must elevate the schools in terms of academics, performance and providing a safe environment for children," he added. "We have to build a first-rate system of schools."

But one national turnaround expert said the budget shows DPS is trying to maintain a system that doesn't work anymore.

"They are kicking the can down the road with these bonds," said James McTevia of McTevia and Associates, based in Bingham Farms.

"It's a classic example of not facing a serious financial problem and being willing to go through the pain of solving it.

State Board of Education Public Forum Set for ... - MI3 / CEN Michigan

"These forums are an important opportunity for citizens and educational stakeholders to share their perspective on how we together manage and implement a tremendous amount of educational change underway," said State Board President John Austin. "All schools in Southeast Michigan, and Detroit in particular, are at a challenging but exciting crossroads in how we organize for success. We look forward to learning how the State Board of Education can best help, and make good policy decisions that support improved educational outcomes for all our young people.

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