April 23, 2010

Dear SK Family,

Good afternoon and Happy Friday!

This is the part of the message where I make a weak attempt at humor within an
even weaker attempt to express my goal to be brief. The topic of budget is
complicated, sensitive, easy to misunderstand, can generate doubt and
uncertainty and is very, very personal. As such, my goal is to be very clear – and
provide more answers than questions. Thus, brief this won’t be…

With legislative decisions made and state budget finalized last week, we were able
to become more specific regarding our budget “gap” for the 2010 – 2011 school
year. With multiple proposals (two from the Governor, one from the Senate, and
one from the House), we have been operating within a wide range of “what ifs”
and subsequent goals for potential reductions. As you know, this unpredictable
range led us to a creative “flotation device” model that focused on million dollar
packages with varying ranges of “pain” for children, people, and programs.

State Budget and SKSD: The Bottom Line

The final state budget impacts us by over 2 million dollars, with 1.6 million from
the elimination of I-728 funding, and over $500,000 through the combination of
4th grade staffing enhancement (K-3 was restored) and the elimination of the
final state-funded Learning Improvement Day. This, coupled with our own
projected “gap” of 3.7 million dollars (enrollment decline, one-time Federal
Stimulus dollars used, etc.) leaves us with a targeted gap for next year of 5.8
million dollars.

Recent History of Resourceful and Responsible

Consequently, we will have cut over 18 million dollars since the 06-07 school
year. While we have been very successful at protecting children, protecting the
classroom and protecting our people, we have all been impacted by the many
sacrifices, reductions, efficiencies and cuts that have been made. In two years
alone, we will have made over 12.5 million in cuts. To share that we have
protected our kids and those who serve them is, I believe, a very true and
accurate statement. But the fact is, cuts have been made, reductions in staff have
occurred, services that have been provided have been eliminated, critical support
and administrative positions that became vacant were not filled; and the impact
has been felt by us all. Gratefully, thanks to a remarkable team that has stepped
up to do more with less, we have sheltered our students from feeling any “pain”
from these difficult decisions.

2010-2011: Filling the Gap

I am proud of the fact that being “resourceful and responsible” is a daily endeavor
and not simply a budget exercise we go through each spring. We shared the
following “preliminary plan” with the School Board on Wednesday evening:

• Our “Raft,” which addressed adjustments made to our current budget -

speaks to our emphasis on making decisions NOW in order to be better
prepared for projected shortfalls and gaps.
o We have identified over 1.3 million dollars: Budget reductions,
unfilled administrative positions, cost savings, delayed expenses,
etc.
• Our “Ferry” replicates many of the cost savings from the current budget
and applies to the 10 – 11 budget.
o We have identified over 1 million dollars: Full year’s savings for
administrative positions vacated and not filled this year; re-
organization of Special Education and Title resulting in one less
administrator, department budget reductions, etc.
• Our other flotation devices are less definitive and will continue to be
monitored and adjusted by actual expenses and decisions (including our
School Board) as they are made:
o Our “Ark” represents Levy Revenue.
ƒ We have 1.4 million in new revenue generated by the Levy
Plan. We have goals and commitments within the plan and
are seeking solutions/resources to not only meet the goals
but also “capture” this new revenue.
o Our “Ship” represents potential new revenue.
ƒ We have tentatively identified $870,000: Special Education
Safety Net, Levy Equalization enhancement, etc.
o Our “Tugboat” represents possible resources within our
designated Fund Balance reserves.
ƒ We have tentatively identified $185,000 as possible one-
time resources.
o Our “Yacht” represents efficiencies, reductions, and restructuring
associated with staffing and services.
ƒ We have tentatively identified $1.4 million: this includes
enrollment driven adjustments to staffing and tighter
staffing formulas within contract agreement.
o Our “Clipper” represents reduced NERC (non-employee related
costs) allocations.
ƒ We have identified $47,534: a 5% reduction in school
budget.

The above estimates total over 6.2 million dollars. Consequently, if you have
been keeping up with the flotation device concept, you will notice that the
“submarine” is not included. This ring would have reflected staffing cuts across
the board – classified, certificated, and administrative. Furlough days were being
considered and ultimately a Reduction in Force would have been necessary to
generate this additional, million-dollar “package.”
No Reduced Education Plan: No Certificated Staff RIF
We believe we can move forward without this dramatic, devastating action, and
consequently, we did not present our School Board with a Reduced Education
Plan which would have been required prior to a Certificated Staff RIF. There
will be no such RIF. The work ahead will be difficult, as protecting “a” position
for all staff has been our goal, some staff will undoubtedly find themselves in a
different position next year due to the potential of involuntary transfers. We will
closely monitor our overstaffed locations with an eye on retirements,
resignations, and voluntary transfers in order to ensure that not only are
positions filled, but strong alignment exists with teacher skill/certification and
building/student needs.

How Does this Impact Classified Staff?

The timeline that drives our decision relative to a Reduced Education Plan only
impacts certificated staff. However, with this decision made, our immediate focus
is a timely decision regarding classified staffing and positions. While we are not
yet in a position to state that no individual or position will be impacted, we are
focusing on “efficiency” options only, and not direct cuts to simply save money.
These are complex decisions and will include conversations with association
leadership and members potentially impacted. I wish this message could be more
detailed and specific; however, we are committed to making these important
decisions as soon as possible in order to ease staff anxieties that exist due to this
uncertainty.

What’s Next?
Being “resourceful and responsible” never ends. Beyond the financial crisis, we
must continually analyze our resources and investments and seek opportunities
to be more efficient. In addition, there are a number of factors that will impact
our budgeting for next year, including:
• Negotiations with SEIU and SKEA
• Additional Efficiency Options within Positions and Programs
• Special Education and Safety Net Funding
• Enrollment Projections and Impact on Staffing
• Decisions regarding Levy Revenue

Reduced Education Plan?

While we did not submit a formal “Reduced Education Plan,” it is very clear that
we have aggressively and painfully implemented a “Reduced Plan.” We have
protected the term that reflects our purpose – Education – but it is critical that
no one consider this to have been achieved without significant reductions, cuts,
and sacrifices:
• Our district-wide custodial team continues their remarkable,
challenging work with 6 less custodians.
• Our office staffing models were adjusted to align with current
enrollment, resulting in a reduction in force. This impacted people,
their hours, and required multiple moves district-wide.
 • Efficiency adjustments to bus runs impacted drivers, hours, and
provided many challenges earlier in the year.
• We continue to assertively and creatively “tell the SKSD story;”
however, the workload in Community Relations was redistributed
to others when the Communications Assistant position was not
filled.
• A Dean position was not filled at the high school, impacting staff,
students, and administration.
• District level Instructional Specialist support and services for
schools, teams, and teachers were reduced through attrition.
• Facilities and Operations reorganized and assigned additional
responsibilities across their entire team when a Manager position
was not filled.
• We are reorganizing and integrating our Curriculum, Instruction
and Assessment team with Special Education and Title team with
one less administrator.

The above examples clearly reflect that – without question - we have REDUCED
and we have CUT.

I am hopeful this message highlights the fact that our organizational purpose -
“Ensuring high levels of learning for all students” - has been at the core of our
decision making. In times such as these, the depth of our commitment to our
purpose is challenged – if our commitment is true, real and genuine, then
decisions are made based on what will NOT be sacrificed. I am proud that we
continue to protect our purpose, and am grateful for such a nurturing and
inspiring team.

“Things turn out best for the people who make the best out of the
way things turn out.” John Wooden

If you have any questions, comments or concerns, please contact me (direct line
is 7009), your site/department administrator, or any of our Union Presidents
Linda Breed (SEIU), Judy Arbogast (SKEA), Janice Stewart (PSE), Ron Ness
(Coaches), Jerry Lundberg (SKAP).

Have a great weekend. Thank you for all that you do –

Dave