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NEWS RELEASE from the San Diego Unified School District, November 15, 2011
Barnett Details Plan to Balance Budget and Avoid Insolvency
Pay Cuts And Health Plan Savings Will Save $70 Million Per Year
Pay Cuts Range From 1.75-12.75%
2,200 Employees would have no pay cut
SAN DIEGO – SDUSD Board Trustee Scott Barnett released the details of his plan to balance San Diego Unified School District's budget and avoid insolvency. SDUSD is facing budget shortfalls from $60 million to over $110 million, including the possibility of $30 million in mid-year cuts.
"While the plan asks for significant sacrifices from our teachers and employees, the burden is shared fairly," said Barnett. "Most importantly, this plan would maintain educational programs and support services at the current level. Class sizes would not grow and we won't need to cut arts, music or athletics.
Under the plan:
· Salaries would be reduced 9% -- saving $58 million a year.
· Health plan restructuring would save $12 million per year.
· Pay cuts range from 1.75% for those earning under $40,000, to12.75% for those earning over $165,000.
· 2,200 part time employees would have no pay cut.
· $50-$100 per parcel tax would be placed on November 2012 ballot to cancel pay cuts as of January '13.
Scott Barnett Plan to Balance Budget
and Avoid Insolvency
ASSUMPTIONS
• SDUSD facing current and ongoing structural shortfall of $60 million.
• SDUSD will receive projected revenue COLA from State in 2012-13 and beyond.
• No Mid Year Cuts from State in 2011-12 nor additional cuts in2012-13 and beyond.
• Note: If SDUSD does NOT receive COLA and/or mid-year cuts occur, then additional reductions in salaries or cuts in academic programs, most likely increased class size, may be required to balance budget.
KEY FACTORS
• Plan is for three fiscal years FY 2012-13 through FY 2015-16.
• Current service levels (class size, academic programs and operations) remain at 2011-12 level.
• No reduction of emergency reserves.
• No land sales and no increased use of one-time revenues to pay for ongoing expenditures.
• All 1Ž2+ time employees to continue to receive option of freehealth and welfare with no premiums.
• November 2012, $50-$100 Parcel Tax vote to end pay cut starting January 2013.
KEY COMPONENTS -- Total Net savings approximately $70million annually
• Payroll reduction of 9%, saving $58 million.
• Health and welfare saving $12 million annually (H&W currently costs SDUSD $165 million/year).
• Net pay cuts range from 1.75% cut for low income employees to12.75% for top managers.
• Furlough days to end—school year back to 180 from 175 days, cost $17 million.
• Step and Column raises of .6%-2.7% to continue, cost $12 million.
• Employees who work less then 3Ž4 time, approximately 2,200, receive NO PAY CUT unless they earn $40,000/year or above.
• Planned general raises cancelled, saving $21 million in 2012-13.
• Employees who work 1Ž2 time or greater will receive Kaiser Health at NO COST (including dependents.) Employees choosing more expensive plan to pay cost difference, saving $12 million annually.
• November 2012, $50-$100 Parcel Tax vote to end pay cut starting January 2013.
KEY BENEFITS
• Multi-year plan to balance budget and avoid insolvency.
• Distributes pay cuts fairly among employees.
• Maintains current class sizes.
• Protects and could reverse recently downgraded SDUSD credit rating.
San Diego Unified School District
Trustee Scott Barnett, Proposed Three Year Budget Savings
November 14, 2011
Scenario for 2012/13 Progressed Salaries General Fund
EMPLOYEE SALARY
% Cut Approximately 9% Reduction District wide
Net $ Saved after restoration of furlough days, step & column raises, but DO NOT include negotiated 12/13 raises
Approx. Net % salary cut AFTER restoring furlough days
All eligible employees who receive Step and Column raises will result in reducing Net % cut an additional .6% to 2.7%
Under $40,000
4%
$2,500,154
1.75%
TBD
$40,000 to $49,999
6%
$2,343,684
3.75%
TBD
$50,000 to $74,999
8%
$34,903,569
5.75%
TBD
$75,000 to $99,999
10%
$9,639,099
7.75%
TBD
$100,000 to $129,999
12%
$4,014,160
9.75%
TBD
$130,000 to $164,999
13%
$402,602
10.75%
TBD
$165,000 and Greater
15%
$187,437
12.75%
TBD
Note $4 million additional savings not shown above
$4,000,000
Grand Total
$58,000,000
Proposed Health and Welfare Savings
$12,000,000
Employees 1/2 time or greater receive full H&W coverage
Proposed Total Net savings
$70,000,000
· All Employees have Furlough Days restored = 2.25% salary increase. Cost estimate $17 million
· Step and Column Raises will continue = .6% - $2.7% salary increase. Cost estimate $12 million
· Negotiated raise for all employees eliminated under this proposal. Savings approximately $21 million
· Proposed reductions would apply to all employees who are employed at 3/4 FTE or greater with the District. Approximately 2200 employes would have NO PAY CUT
· No pay cut for any Employee working less then 3/4 time unless they earn $40,000 or higher
· Proposal includes School Board Members $18,000 salary being cut 10% after restoration of furlough days = 8% cut
CONTACT:
Scott Barnett
619-857-1857 call or text
scottbarnettsdusd@gmail.com<mailto:scottbarnettsdusd@gmail.com>
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