- - - COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, April 18, 2005, 11:10 a.m. - - - 050004 - An Ordinance amending Section 19-1801 of The Philadelphia Code, entitled "Authorization of Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia; all under certain terms and conditions. 050005 - An Ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1804, entitled "Authorization of Net Income Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on net income from real property and tangible and intangible personal property of residents of the School District of Philadelphia; all under certain terms and conditions. 050006 - An Ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806, entitled "Authorization of Realty Use and Occupancy Tax," to further authorize the Board of Education of the School District of Philadlephia to impose a tax on the use or occupancy of real estate within the School District of Philadelphia. - - - V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE L. BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN DONNA REED MILLER COUNCILMAN JUAN F. RAMOS COUNCILWOMAN MARIAN B. TASCO 3 School District Budget - 4/18/05 - - - P R O C E E D I N G S - - -
This is the public hearing of the Committee of the Whole regarding Bill Numbers 050004, 050005 and 050006. We will hear testimony from the School District of Philadelphia and the School Reform Commission concerning the School District's budget for fiscal year 2006. Please note that the hearings on the three bills to re-authorize School District taxes, the bills which I just read, will also be held tomorrow, April the 19th, at 10 o'clock, in these chambers. The transcript of today's hearing will be included as part of the record of the hearings on those bills. With me is Councilwoman Blackwell, who is Chair of the Education Committee. And at this time I would ask Mr. McPherson to please read the titles of the three bills. 4 School District Budget - 4/18/05 MR. McPHERSON: Bill Number 050004, an Ordinance amending Section 19-1801 of The Philadelphia Code, entitled "Authorization of Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia; all under certain terms and conditions. Bill Number 050005, an Ordinance 11 amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1804, entitled "Authorization of Net Income Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on net income from real property and tangible and intangible personal property of residents of the School District of Philadelphia; all under certain terms and conditions. Bill Number 050006, an Ordinance 23 amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1800 of The Philadelphia 5 School District Budget - 4/18/05 Code, entitled "School Tax Authorization," by amending Section 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806, entitled "Authorization of Realty Use and Occupancy Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use or occupancy of real estate within the School District of Philadelphia. an ordinance 12 amending Section 19-1801 of the Philadelphia code entitled authorization of tax, to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia, all under certain terms and conditions.
Thank you. We will now hear from the School District. Would Mr. Nevels and Mr. Vallas please approach the witness table.
Thank you so much. 6 School District Budget - 4/18/05 It's fine to see you, Council President.
Kindly identify yourself for the record and proceed with your testimony.
My name is Jim Nevels and I'm the Chairman of the School Reform Commission. Good morning to you both. Councilwoman Blackwell, it's always good to see you.
And it is a pleasure to be here. I sit here on behalf of my four colleagues. I want to identify two of my colleagues who are with us this morning, Commissioner Sandra Glenn and also Commissioner Martin Bednarick. In addition, I sit here on behalf of the 200 plus thousand children in the School District of Philadelphia. And I'm here to say thank you, thank you, and thank you again to this Council, who has been an active and very vital participant in school reform in Philadelphia. 9 billion. While our Chief Executive Officer, Paul Vallas, and our interim Chief Financial Officer will speak in greater detail about how we propose to allocate our resources, I am pleased to say that this will be the District's second structurally balanced budget in a row. When then Governor Mark Schweiker announced a landmark partnership with Mayor Street in December of 2001 to transform the Philadelphia public school system, the School Reform Commission came into existence. The commission was given a mandate to put the beleaguered system on a sound footing, both fiscally and academically. 8 billion capital program to create new schools and renovate existing ones, and raise the number of schools. And I want -- I want to -- I really want to emphasize this. We have raised the number of schools making adequate yearly progress from two years ago, to 58 last year, and up to 9 160 this year. 10 Our report to you today is a 11 reflection not only on how we propose to 12 spend revenues going forward, but also on 13 what progress we have made in living up to 14 our mission and your requests. 15 Mr. Vallas will expound on the many 16 initiatives put in place over the past three 17 years that have resulted in the creation of 18 much needed programs to support the academic 19 growth of our children. Our increased test 20 scores are just one key measure of that 21 growth. 22 However, I see my role today as focusing not so much on how far we have come -- and we have come very far on behalf of children in Philadelphia -- but how far we 9 School District Budget - 4/18/05 still must go to make our public school system one of which all Philadelphians can be proud. Many of you may be aware that last May, after much thoughtful discussion and deliberation, the members of the School Reform Commission developed with Paul a statement of beliefs and vision for this district. We also hammered out a set of quantifiable measures that matter. Targets to meet by the year 2008. We call these measures that matter our declaration of education. Everything we do in the district is now influenced by these goals. Principals and department heads are guided by these goals, as they plan at the grassroots level of our system. O. himself will be evaluated on how effectively their efforts propel us toward these goals. The School Reform Commission stands ready to be judged by these goals. 10 School District Budget - 4/18/05 To achieve these outcome-based goals, this proposed budget focuses funding on six measures that are fundamental to the declaration of education. They are: Administering early childhood programs that enable every child to begin school ready to learn and succeed. Two, they ensure that all children reach their learning potential and achieve the high academic standards set forth by the District, the Commonwealth of Pennsylvania and the Federal government. Next, promoting the safety and security of our schools and the surrounding areas. And I know that this is something that is important to all of us. Next, providing equitable resources and opportunities for all district students. Supporting collaboration with community groups and families throughout Philadelphia. And finally, enhancing the efficiency of operations that support an academic environment that is conducive to 11 School District Budget - 4/18/05 learning.
Just as the commissioners expect that this proposed budget should, in fact -- in fact, must -- support the declaration of education goals, we also ask that the Council evaluate the proposed budget that we have placed before you by these same measures that matter. The School Reform Commission, the School District administration are committing -- are absolutely committed to eliminating the achievement gap between the haves and have nots in our City and between ethnic groups in this City because that achievement gap for too long has been characteristic not only of this district but also of urban school systems across our nation. With the continued support of City Council, the City administration, and the entire Philadelphia community, we will create a public school system in our City that is second to none, where all students of diverse backgrounds will be prepared and empowered to 12 School District Budget - 4/18/05 achieve their full intellectual and social potential. I do appreciate your attention. , Paul Vallas and the Executive Director of the commission, Diane Govayen, and my special assistant Frank Seifert, will be available to answer any policy, program or business-related questions you may have. We are at a critical point in the history of the relationship between this City and its children. And what I would like to leave you with is a statement, a quotation that says it far better than I. I hope it will be said that we taught them, we taught those children to stand tall and proud, even in the face of history, and that the future was made new and whole for all of us, one child at a time. Thank you.
Thank you very much, Mr. Nevels. Councilwoman Brown, I see that your 13 School District Budget - 4/18/05 light is on. Did you want to be recognized?
Thank you, Mr. Nevels. We will now hear from Mr. Vallas.
That you. First of all, if Greg Thornton could join me. Greg, if you would come up, too, and if we could get the chiefs in the back row here. We've distributed two handouts. The first handout are my remarks. And I'm going to try to get through my presentation within a half an hour. And in the second handout is this very nice multi-colored handout. And there are things that I'm going to -- pages I'm going to be referring you to when I go through the presentation. And, so, we want to make sure everybody has a copy of that. I appreciate that. Okay. First of all, good morning, Council President Verna, City Council members and distinguished guests. I want to thank 14 School District Budget - 4/18/05 you for allowing me this opportunity to update you on the ongoing reforms currently taking place in the School District of Philadelphia. Before I get into the substance of my presentation today, however, I would like to once again take a moment to thank each and every Council member and Mayor John Street for your leadership in the assistance you have provided to the School District. Make no bones about it. The Council and the Mayor do not get enough credit for the reforms that are going on in the district today. These reforms and the progress that we're experiencing would not have been possible had it not been for the leadership of the Mayor and for the leadership of the City Council. And we truly appreciate it. We realize the important role that you have played and you continue to play as we move the School District forward. Let me point out that this district has indeed experienced real success over the 15 School District Budget - 4/18/05 past few years. If you look at the number of schools making AYP, we have gone from 4 schools making adequate yearly progress to 5 160 schools in just the past two years. That 6 is real progress by anyone's definition. 7 If you look at the academic 8 performance of the School District the last 9 two years, we have seen substantial increase 10 in our reading and math scores. In fact, the 11 increases that we have seen in our reading 12 and math scores have been double at the rate 13 that the state has experienced and much 14 greater at the rate that has been experienced 15 by the large urban districts. 16 In fact, just three weeks ago the 17 Council and Great City Schools invited us to 18 a press conference announcing their annual 19 report on progress of large urban school 20 districts. And they cited us and Richmond, 21 Virginia, as the two large urban districts 22 that have shown the most significant improvement. That said and done, make no bones about it. The School District still has an 16 School District Budget - 4/18/05 incredibly long way to go. While we've shown substantial increase, more than half of our students are still not at proficiency, let alone high proficiency. So, we want to continue to see this pace of improvement in the coming years, if we are to approach and reach the measures that matter, that have been -- that -- as identified and as defined by the -- by the School Reform -- School Reform Commission. But in addition to these reforms, we have balanced our budgets structurally now two years in a row. We've let out a financial plan today that will ensure that our budget remains balanced at least through 2008, and we hope even beyond that. And we finalized collective bargaining agreements, four-year collective bargaining agreements with all of our unions. And let me point out that these collective bargaining agreements, while negotiating the types of -- I call them reforms so that the collective bargaining agreements are not obstacles to continued and expansive reform 17 School District Budget - 4/18/05 in the district -- the collective bargaining agreements were all within the financial parameters laid out by the School District.
So, unlike past administrations, unlike past years, we are not going to have to balance -- we are not going to have to pay for these collective bargaining agreements by increasing class size, by cutting after-school programs and summer school programs. In fact, our negotiations with the teachers union, the collective bargaining agreement over four years will cost us only $17 million more in aggregate over those four years than what we budgeted for as part of last year's five-year plan. So again, the agreements will help push reform forward, and the agreements will help us sustain our investment in the classroom, obviously, which is so critical if we're going to turn this school system around. In addition, you've seen the beginnings of physical improvements in the 18 School District Budget - 4/18/05 School District. You've seen our investments in curriculum instruction in professional development. You've seen the beginnings of restoration of honors and advanced placement programs. The bottom line here is, the School District is on move. We are financially stable. We are -- We have a sound academic strategy. We have an ambitious capital program to move the School Districts forward. And we'd like to think that we've reprogrammed dollars into the classroom at an unprecedented level. In this presentation, we lay out a breakdown of how much money is allocated in School District. And if you look at the categories of academic advancement and equity, 79 percent of this budget goes into those two categories and less than 6 percent of the budget goes into administration. Our percentage of money spent on administration is among the lowest, if not the lowest, among large urban districts, and 19 School District Budget - 4/18/05 it will continue to get smaller. So, we'd like to think that with your assistance we have -- we have moved this budget in the right direction. We've reprogrammed and we've re-prioritized. And as you know, last summer the School Reform Commission created a series of goals for the School District of Philadelphia called the declaration of education. If you turn to in your binder here, you'll see a summary of those goals. And let me point out that those goals and these objectives are what will define us as an exceptional School District. And we like to say, what is it we want to become? What type of performance constitutes the type of performance that will provide children with the type of quality education that they so richly deserve? These are the goals. These are the goals which, if reached, will define us as a high-performing, exemplary large urban district. If we're able to achieve these goals, this district will truly be second to 20 School District Budget - 4/18/05 none. But the task for me, and the task for the management team, and the task for our principals and our teachers in schools is to lay out programs and policies that will allow us to implement these goals. Because at the end of the day, we, like other large urban districts across this country, remain underfunded districts. At the end of the day, we do not have all the resources at our disposal that perhaps some of the more affluent districts enjoy. But rather than to use our lack of resources as an excuse, we've rather said, this is what we can do by using our existing resources and spending our existing resources wisely. So, the responsibility, the task before us, is to develop a comprehensive reform strategy that will help move this School District forward. And what I want to do with my remaining time is, I want to talk about the strategy. I want to take about what this 21 School District Budget - 4/18/05 district is becoming, where we are in the process, how this budget contributes to that vision for the district. Because the changes and the reforms that we're implementing will put us in a position to reach, and to approach -- and to at least approach the goals that have been set by the School Reform Commission by the year 2008.
Let me -- Let me summarize what this comprehensive strategy consists of. First, increasing the number of students enrolled in pre-kindergarten and kindergarten so students are prepared for school the first day they begin kindergarten. Second, reorganizing the district by phasing out problematic middle schools, in order to improve the safety and provide small learning environments. Third, creating smaller high schools and expanding high school choice so that our high schools are more conducive to learning. Fourth, standardizing the curriculum while increasing instructional time on tasks 22 School District Budget - 4/18/05 so students stay on par academically with their high-achieving counterparts in other school districts. Fifth, adding gifted and high achievement programs in all of our schools, in order to ensure that every student has the opportunity to learn at the highest possible level. Sixth, rebuilding schools so that they are safe and that they support our academic achievement. And seven, continuing to expand our after -- our alternative schools program so we can continue to deal with students who, for disruptive reasons or for other challenges, need to be placed in a more suitable, more appropriate learning environment. While the declaration is bold, the declaration is achievable. These reforms will help us achieve those things. So, let me talk about these goals in a little more detail. Let me first talk about our goal to 23 School District Budget - 4/18/05 dramatically expand early childhood. By 2008, this school system will have 80 percent of its students enrolled in School District funded pre-kindergarten and kindergarten programs. Now, let me point out when we talk about our pre-kindergarten and early childhood programs, we are referring to programs that the School District funds and not programs that are provided by private providers. They are -- There are now close to 500 private providers who receive reimbursement from the state to provide all sorts of early childhood, child care and day care programs. So, we are setting as a goal for this district to have at least 80 percent of the 2008 kindergarten class having been through a district-provided program. Right now about 70 percent of our students entering kindergarten have participated in some sort of pre-school, either provided by us or provided by other 24 School District Budget - 4/18/05 providers. In this budget we will be reprogramming early childhood and pre-school dollars so that we can shift additional money to programs and to higher quality programs, while at the same time expanding the number of early childhood slots available for children. Let me summarize. One of the more controversial things we will do in this budget is, we will phase out the child/parent centers and convert them to Head Start Centers. In this -- In the next school year Head Start will accommodate -- state funded Head Start will accommodate 450 families each year up from -- above what they accommodated last year. By consolidating our early childhood programs into our Bright Futures Initiative, we will be able to provide 93 pre-kindergarten classrooms. And we're talking about the School District's version of Head Start classrooms that will serve 25 School District Budget - 4/18/05 1,800 pre-school children and their families. The district will also begin serving 400 families through the Parent/Child Home Program, a home-based literacy initiative for two and three-year-olds. In addition, the district will be adding slots for another 500 pregnant teens, through our pregnant teen parenting program, which will allow us to enroll the pregnant teens not only in the counseling and the supportive services provided by that program, but it will obviously also allow us to enroll their children in day care and pre-school programs.
Let me point out that the net effect of this will be over -- over the next two years we will have -- we will have well over 2,000 additional children in high quality early childhood programs. Depending on the -- Depending on where we finish with the budget in Harrisburg, we may very well be able to secure 2,000 additional spaces in this year alone. School District Budget - 4/18/05 In addition, any children who were in the existing, more comprehensive child/parent centers will be referred to one of the 500-plus providers who provide comprehensive day care and provide early childhood support at state reimbursement. The state has seen fit to provide more funding in many ways to the private providers than the school providers. So, by taking advantage of the private providers, and then reprogramming -- reprogramming our money so that we can -- we can open more school district run Head Start programs as well as state funded Head Start, and by expanding such programs as the Elect Cradle to the Classroom Program and the Parent/Child Home Program, we're talking about -- we're talking about dramatically increasing the number of children served and at the same time with no additional cost to the district. If we are able to receive additional money for early childhood and pre-school programs, we will expand those programs 27 School District Budget - 4/18/05 accordingly. But about the only money we're going to be getting in increased state assistance this year will be specifically for the state-funded Head Start program, and that will mean an additional 450 slots. But in simple terms, children who are affected -- and I believe about 248 children will actually be affected -- can easily be migrated to the existing comprehensive day care programs provided by private providers which are state reimbursed. In turn, we will be able to increase the number of children having access to early childhood and pre-school programs, programs run and managed by the district, by literally 2,000. So, the bottom line is, any time you can reprogram your money and benefit 2,000 additional kids, it's prudent to do so. Secondly, over the -- by 2008, our goal -- our goal has been to have -- to have this -- to reorganize the district so that it is a seamless K to 8, 9 to 12 district. 28 School District Budget - 4/18/05 Middle schools don't work. None of the research supports middle schools. All of the research supports the K to model. 5 Why don't our middle schools work? 6 In large part because they're fed by multiple 7 feeder schools. 8 Our middle schools are large. Our middle schools have multiple feeders. The children are moved from the sanctuary of maybe being 1 of 60; fifth graders to being 1 of 400 or 500; sixth graders when they're transferred to middle schools. Our middle schools are normally fed by three or four and sometimes five feeder schools. And because of mobility, they are sometimes fed by as many as eight or nine feeder schools. So, the bottom line is, they simply are ineffective. And I believe prior to two years ago only two or three of our non-magnet middle schools were making AYP. There is also a huge exodus that exists within the system between fifth and sixth grade because parents can't get their 29 School District Budget - 4/18/05 children in Gamp or parents can't get their children in Masterman. They generally will not send their children, if they have the means and the wherewithal, to the middle schools. We began phasing out the middle schools two years ago. By 2008 we will have gone from 67 elementary schools to -- K to 5 schools -- to 130 K to 5 schools. There are an additional 44 schools that are being -- that are adding grades to accomplish this transition. In addition, we're spending upwards to $25 million in these schools to support the transition. The resources are being used for classroom modernization, for new science labs, for tech centers, for classroom materials, for infrastructure improvements.
So, we are not transitioning these schools without going in and making some adjustments and making some changes. Plus, we are focusing very heavily on middle grade teacher recruitment which is obviously an area of need, with the No Child 30 School District Budget - 4/18/05 Left Behind deadline hanging over all of the school districts' heads by -- that all teachers be highly qualified by June of 2006. There clearly is a need -- There clearly is a need to do -- to do a better job, recruiting highly qualified middle grade teachers and to get them into the middle grade programs. I also point out that with the School District's site selection abilities, as we add grades to our K to 5 schools and then go to sixth and seventh and eighth grades, we can -- we can recruit the best person available. We have the ability to -- through the new contract, to use site selection when a school is -- is -- when a school is being converted or a school is -- is undergoing expansion, like expanding the number of grades. But by '08 we will have gone from, I believe, 46 middle schools to 8 intermediate schools. And believe me when I say, this will be a far better district as a result of 31 School District Budget - 4/18/05 this. Just a little footnote. Sixth grade reading and math scores have always lagged behind everybody else. They've always been among our lowest test scores. The last year when we had about 37 middle -- K to 5 schools -- they had added sixth grade -- our test scores on the turnover took big jumps in sixth grade. For the first time in years, we actually saw a big jump in middle grade -- in middle grade -- in sixth grade test scores, an early indicator of the soundness -- soundness of this approach. Next, by September -- by September of 2006 the curriculum reforms will be done. To date, we have -- To date, we have standardized curriculum pre-K through 11th grade in language arts and in math. And this year we standardized a curriculum in 7th grade through 11th grade in social studies and science. Next year the primary grade in the 12th grade curriculums in social studies and 32 School District Budget - 4/18/05 science will have been complete. So, we will in effect have a comprehensive -- We will have literally instituted our comprehensive curriculum instructional forms in three years. And let me point out that these curriculum instructional reforms have -- have -- have -- have not been implemented in a vacuum. If you'd turn to , this summarizes what we've done and the investment we've made in our curriculum instruction reforms. Last year alone we purchased 500,000 new textbooks. We have spent -- We have spent to date -- We have spent to date over -- over -- over 40 -- I'm sorry -- over $50 million just on our curriculum and instructional materials and to finance the curriculum and instructional reforms. And we've done this, incidentally, not by paying it all at one time, but negotiating with the companies, the curriculum companies, the textbook companies, 33 School District Budget - 4/18/05 to get the textbooks now and to pay them over a number of years, plus allowing them to help us finance those reforms. Next year we will spend another $18 million on curriculum and instructional materials, to have completed the transformation of this district. This district now has a curriculum system, a curriculum instructional system, that is data driven. That means every six weeks we benchmark student performance. Every six weeks parents are notified about the progress that the children are making. The curriculum instructional materials are aligned to state standards. We are no longer teaching our children to below grade level standards. And the benchmarks are designed to help them maintain, to help them keep pace with those standards. To address the issue of children who are struggling, we've mandated additional instructional time on task.
So, while raising the standards -- While raising the bar -- And you only close 34 School District Budget - 4/18/05 the gap by teaching children at grade level standards. You don't close the gap by dumbing down the curriculum which has characterized our schools in the past. And let me point out that when you consider that we have about a 35 percent mobility rate, there better be some consistency in what we're doing across this school district subject by subject. But in the past -- Over the past two years, to help the students who are struggling and to help to give the teachers -- and to give the teachers more help in helping -- in getting the children to standards, to those benchmarks, we have increased the instructional time on task. So, children at the primary grade level are spending two hours a day on reading and 90 minutes on math. At the middle grade levels, 90 minutes on reading, 90 minutes on math, 45 minutes on science. At the high school level, the language arts and math periods have been doubled. And if children are continued to 35 School District Budget - 4/18/05 academically struggle, they are provided additional instructional time in our after-school extended day and summer school programs. So, children who participate in after-school and extended day, can -- can be provided up to 200 additional hours of instructional support on their critical subject areas beyond just the additional instructional time that we're afforded in the classroom. So, the standardized curriculum, combined with the investment in additional instructional time on task, the purchase of new curriculum instructional materials, is making a difference. And finally, on the curriculum -- on the subject of curriculum, we're providing teachers with close to 100 hours of professional development on the curriculum instructional models. This is the second year we've provided professional development to that extent, about two-and-a-half times the amount 36 School District Budget - 4/18/05 of professional development we've provided on the -- in the past. So, if you're a new teacher teaching out of your area of certification or you're new and inexperienced, you're not only provided with state-of-the-art curriculum instructional models; you're provided intensive training on those models. If you're a veteran teacher --
I'd like to interrupt you for just a moment, please. It's my understanding that there are people in the audience that are having conversations. Council members are being distracted.
-- time on task, combined with intensive professional development, is going to transform this district. Every major urban district that has shown progress, every school in struggling 37 School District Budget - 4/18/05 urban districts that have shown progress, have done it by investing in curriculum instruction and professional development. Our managed instructional program is absolutely second to none. In fact, we already have school districts that are purchasing our curriculum instructional programs at a profit to the school district that we are reinvesting because of the quality of their programs. We've already been invited to participate in the great city schools as part of their curriculum instructional teams that they send out to other districts, to advise them on the curriculum instructional models. But in addition -- in addition to standardizing our grade level curriculum, we have standardized our intervention curriculums. We've also standardized our honors advanced placement and accelerated curriculums. So, as long as we continue to invest in this area, I think we're going to continue to show gains. And I think you see the level 38 School District Budget - 4/18/05 of investment. This is unprecedented investment, unprecedented investment in the real measure that matters. And that's the measure in the classroom, the measure of investment in the classroom. Beginning in September of 2006 -- Next, if I can just comment for a minute, beginning in September of 2006, we are going to be putting gifted and high achievement programs in every single school in this system. This is not just about getting kids proficiency. It's about getting children to high proficiency. Last year we began -- we began to restore honors and advanced placement courses to our high schools. P. honors and advanced placement. Now all of our high schools do. P. honors courses in those high schools over the next few years. P. to 4,000. We want to increase 39 School District Budget - 4/18/05 that number. But this year for the first time we are going to -- we want to make sure that there are gifted and high achievement programs in all of our elementary schools. So we're going to be doing the following things: First, the after school and extended day programs in the district are being modified so that we can add after school gifted and after school high achievement. So every single elementary school, wherever that elementary school is located, are going to have high achievement programs, just not to serve the gifted children but to create gifted children, to take children and to take them to the next level. Because the gap between -- between... The gap in the high proficiency category is even greater than the gap in the proficiency category. And inner city children have about one-third the access to honors and advanced placement and accelerated programs as children -- higher income 40 School District Budget - 4/18/05 children in the more affluent suburbs. You close the gap by providing the programs. So every school, every school, will have after school high achievement. We are working with college boards to establish these programs and to make sure that these programs -- make sure these programs are in the small schools. Secondly, by -- by -- we are going to be selecting 50 schools over the next year throughout the district to have what we call our high achievers academy. In other words, we're going to be taking -- we're going to be taking neighborhood schools, and we're going to be putting literally gifted and high achievement academies in those neighborhood schools. Now, let me point out that by '08 we'll have 137 k to 8 schools and then eight intermediate schools. So, by '08, 50 of those 137 schools will have -- And when you include the intermediate schools, 145 schools, at least 50 of them will have high achievement 41 School District Budget - 4/18/05 academies. What type of high achievement academies are we talking about?
We're talking about, number one, Montesouri. We are going to be selecting ten schools to be Montesouri academies. Number two, international baccalaureate prep. We're going to be selecting ten schools for the prestigious international baccalaureate program. These programs prep kids for international baccalaureate programs that we're making available in the high schools. Number three, the advanced scholars program, which is our own version of accelerated high achievers academy. It's designed by Greg Thornton, based on his Montgomery County, Maryland experience. Number four, five of the schools will become -- will use the university lab school model. They will become lab schools like Penn Alexander, in affiliation with high schools. And then finally -- And then 42 School District Budget - 4/18/05 finally, of our -- 15 of our deseg schools will in effect become emerging scholar schools. So, these schools will develop -- will be given kind of the district's version of high achievement academy models. If you look at Pages 8, and 10, we 8 summarize our efforts to expand high 9 achievement programs to the district. While we have already identified the 15 deseg schools, and we have selected 15 of the 50 schools, we have selected our deseg 13 schools to be -- to be -- to house our high 14 achievement academies. 15 Because obviously those schools have broader enrollment patterns, we do a lot of busing to those schools. It's very consistent with the deseg guidelines set down by the courts in past years. At least 35 schools have not been selected yet. So, by the time we're done, if you look at the map that we provided on 9, and if you look at the map, you can multiply these numbers literally three-fold, because while we've identified where the 15 43 School District Budget - 4/18/05 so-called deseg schools are, we will be adding 35 schools to this map. We've already listed the emerging scholars schools already. We've already laid out the emerging scholars schools. But what we will have done over the next couple years is literally -- is literally not only restore gifted and honors and accelerated programs to the schools, but we would have increased the number of program offerings so that this district will have more honors advanced placement, accelerated high achievement programs per capita than any other major school district in the country. Our goal here is to advance academic performance, not only by putting the programs in the schools to help children -- to help children reach proficiency, but we want to catapult our children beyond proficiency and into high proficiency. And all these high achievement programs are designed to do just that. They're just not designed to address the needs of gifted children. They're designed 44 School District Budget - 4/18/05 to create more gifted children, to create more high achievers. B. P. prep program, the Montesouri programs, the emerging scholars programs, these are programs designed to take children, average children, and to turn them into extraordinary children. I will make a footnote. We will not be in any way playing around or reprogramming existing gifted dollars. We didn't want to deal with the controversy of messing around with the existing gifted program. So, we will be adding. But let me just give you a contrast. The regular gifted programs in this School District, as mandated by the state, the amount of time you get in those gifted programs a week ranges from one to two hours a week of gifted. Under our -- Under our extended day program alone, children will receive at least four hours of gifted and accelerated a week. 45 School District Budget - 4/18/05 And if they stay for the second hour of our after-school extended day enrichment, it will be eight hours a week of gifted and enrichment.
So, just those schools that don't have the academies that -- but have extended day gifted and extended day high achievement alone, those kids are going to receive services that dwarf the current gifted services that are provided. And let me point out once again: Our goal is to make sure that we have gifted programs and high achievement programs in all of our schools. By 2008 we will have literally doubled the number of our high schools from 38, when we got started, to literally 80, when you include the charter schools. What we have begun to do is our goal here is to reduce the size of our high schools and to expand school choice. So, as middle schools are being phased out, they're being converted to magnet high schools -- to high schools. 46 School District Budget - 4/18/05 As we're taking our branch schools, renovating them and making them independent high schools. And we continue to approve new charter schools. Our goal here is to -- is to not only expand the number of citywide magnet high schools, but to expand the number of high school choices in every region. So wherever you live, whether it's Center City, whether it's South Philly, whether it's central, whether it's northeast, whether it's northwest, whether it's West Philly, there will be multiple high school options available. Once this transition is complete, we will -- the average size of our high schools will drop from 17 -- from over 1500 per school to less than 800. And half of our schools will have fewer than 800. I'm sorry. Two-thirds of our schools will have fewer than 800 and half of our schools will have fewer than 500. And there will be school choice in every single region. 47 School District Budget - 4/18/05 Of the new high schools, the new small high schools we will create, at least nine will be select enrollment magnet high schools. We will be replicating Central. We will be replicating Masterman. We will be replicating Cappa. We are bringing Siverson from New York in to replicate that magnet school. We'll be replicating Illinois' Northside College Prep. We will be replicating Boston Latin. The goal here is to replicate select enrollment magnet school models, our own and others, and to bring them -- to bring them in Philadelphia. T. and Siverson to develop a mass science academy. So, the objective -- We will literally have magnet high school options, 22 citywide magnet high school options, open and available for children to enroll in above the nine magnet high school options we have now. But this isn't just about 48 School District Budget - 4/18/05 magnetizing schools because we are going to be putting magnet programs in neighborhood schools. The international baccalaureate consortium has -- headquartered in Switzerland -- has just approved full certification or initial certification for our five international baccalaureate academies that are being put in neighborhood schools. We're going to be increasing the international baccalaureate academies to 11. So, 11 of our comprehensive neighborhood schools will have the prestigious international baccalaureate academies. Those are international diploma academies. And when you look at catalogs highlighting performance schools throughout this country, it seems that every other one has an international baccalaureate program. So, we think that the dramatic expansion of school choice options, combined with putting honors in AP, in advanced placement in all of our schools, combined 49 School District Budget - 4/18/05 with magnetizing our neighborhood schools with programs like IB, and then when you combine the fact that we're going to be increasing the number of our select enrollment magnet schools, we think that there are going to be so many school choice options available that no one's going to leave the City for want of a superior choice, and no child who doesn't have the option of going somewhere else is going to feel that they're denied quality educational opportunities. Okay.
So, we think that this will -- We think that this will -- that this will help transform the system. I also point out that our high school restructuring is very consistent with the re-prioritizing of Federal aid dollars. So, we feel that our programs are eligible for magnet school funding at the state level. The fact that we test at all grade levels, at ninth, tenth and eleventh put us in line to access Federal money for testing and for accountability. We have -- We have programmed our 50 School District Budget - 4/18/05 dollars in a way that makes us eligible for additional state -- additional Federal and hopefully additional state money because, as you know, it's like both at the national level and at the state level attention seems to be shifting to high schools. We are once again ahead of the curve and we think that this is going to put us in a good position. Let me give you a couple examples, just very quickly, of how this is going to impact individual regions. Let me take one example, West Philadelphia. As you know, we are planning on building a new West Philadelphia High School, but we're also converting Sayre to a high school. And we're looking at the Illinois Northside College Prep model. Northside College Prep is the number one high school in Illinois. And that conversion has already begun. Plus, we've broken ground in the Microsoft School. So, if you live in the West Philly catchment area, you'll not only have the 51 School District Budget - 4/18/05 option of going to West Philly, but you will have the option of going to Sayre, or you'll have the option of going to Microsoft. If you look at South Philly, Palumbo is being converted to a high school. Shelley Palbolt from Central is going to be our project manager. He's looking at a Central High School model design. We've approved Mastery Charter, one of the best charters in the country, the Thomas conversion to Mastery Charter. There's already an outstanding charter school in that area, the Prep Charter. Literally three additional high school options, in addition to hopefully what will continue to be an improving South Philadelphia High School. So, whether you look in any region or in any area of the City there are multiple choice options. And we don't have all day to wait for these choices. We've got to create choices and create and options now. So, if we can expand choice, and at the same time 52 School District Budget - 4/18/05 reduce the size of our high schools which makes them more manageable, I think we can do a lot to stem -- to expand educational opportunities for all children. And again, many of these conversions -- at least two-thirds of these conversions have already begun or are beginning in September. And by 2006, all, all, of the 28 small high school projects will be under way. Our goal is to have the bulk of them complete by 2008. A couple final things. The district has also taken steps to enrich student life with new athletic facilities, sports equipment and band equipment. If you turn to , we summarize many of the enrichment things that we're doing. We're refurbishing gyms. We're upgrading athletic fields. We're building tennis courts. 5 million for the use -- for new athletic equipment. For the second year in a row we're providing a grant of close to $1 million for band equipment. 53 School District Budget - 4/18/05 Our goal here has been to really begin to invest in the type of enrichment programs that will provide children with an opportunity to participate in extracurricular activities with not only the right equipment but also the right facilities. And let me point out that as we've improved our athletic fields, particularly at super sites, we've also invited the Archdiocese to participate and to also use our super sites, because at the end of the day, you know, the children who send their kids to parochial school are also taxpayers, and they should be able to share our sites, as long as they work with us to help cover the cost.
So, we're going to continue -- We're going to continue to expand, and to enrich and to, you know, enrich our schools by increasing the extracurricular activities. Let me point out that in the last two years alone we have gone from 440 teams in all of our sports -- we're talking about athletic and chess clubs -- to 660. And by 54 School District Budget - 4/18/05 2008 there will be 800 teams in the schools. And we've also begun a middle grades program, so that we can begin expanding middle grade program opportunities. If you look at these programs altogether, we still have a long way to go. But as long as we continue to make these what I call substantive year-to-year investments, we are going to quickly bring our schools up to par -- up to, you know, get all of the extracurricular activities to a reasonable level so that our schools are just not about academics; they're also about athletics, they're also about music, they're also about art, they're also about other enrichment opportunities. And finally, school construction. 8 billion school construction program. Let me point out that while the School District has completed a number of projects, the bulk of the school construction programs remain to be done. 55 School District Budget - 4/18/05 Right now we've completed 54 capital projects totaling $71 million. Most notable among those projects is the New Hunter School, the Overbrook Educational Center, the Miller Alternative School and the McDaniel Annex renovation. We've also spent upwards to $20 million bringing the School District into compliance with the additional licensing, health and safety licensing responsibilities -- mandates that were passed -- that were passed on to the School District by the City Council two years ago, in the legislation sponsored by Councilman Nutter. I think we've made great strides towards implementing the mandates. But this year we will embark upon close to $600 million in new construction in additions and major renovations. And so, the capital plan will really begin to pick up speed in the coming year. Let me point out that that includes the construction of a new Fels High School, the construction of a new Lincoln High 56 School District Budget - 4/18/05 School. We're hoping that we'll be able to break ground on the new West Philly High School. We hope to break ground at least by January or February for the new Auden Reed High School, the new G Hunting Park school, the new the -- perhaps the new Willard school, a Barry replacement school. There's a number of major renovations and major additions in the budget, but there is close to $600 million in projects that are in the planning stage right now, that are in the design stage. And we hope to at least begin breaking ground on all those projects before the school year is complete. 8 billion, we have at least $4 billion in need. Very little has been invested in a substantive way in school construction over the last 20 years. In fact, in the 1980s barely a dollar was put into school construction and repair. As a result, we have buildings that 57 School District Budget - 4/18/05 are literally falling apart. And we're closing a number of buildings like Barry and Wanamaker and eventually, you know, eventually possibly even Bok, because the buildings cannot -- simply cannot be repaired. For example, the Bok School, the facade is separating from the building, which will make it structurally unsafe in about three to four years. $38 million it will cost just to repair -- just to do basic repairs to that building. If you're going to spend $38 million, you're better off building a new building. So, we have tremendous needs as a result of decades of neglect. And there's always this frustration in not being able to get the capital projects done in quick enough fashion.
But in many respects, the needs are so great it's going to take a couple years before people really begin to visually see the changes because there are so many schools that are in need of renovation. 58 School District Budget - 4/18/05 One thing, though, that we will be able to accomplish, that we will be able to accomplish by 2008 is the modernization of our classrooms. We are -- We are -- We are driven to ensure over the next three to four years that every single child is being educated in a modern classroom. What do I mean by modern classrooms? White boards and smart boards. Laptop computers, audio visual materials, modern school furniture, modern lighting, bright lighting, ventilation. The objective here -- classroom libraries which we over the next two years will install in every single one of our elementary school classrooms. We want -- While we're not going to be able to replace every old building, we want our children, when they walk into that classroom and where they spend 80 to 90 percent of their time, we want the children to be able to spend time in a modern classroom that's on par with anything that the suburbs -- that the high -- that the high 59 School District Budget - 4/18/05 income districts are able to afford. Those are the things that are achievable. Now, let me close by talking about how we're going to finance all these things. Let me point out that everything that I've described here is in the School District's financial plan. And the things that I've talked about achieving by '08 and the things that we've talked about doing in this year's budget is budgeted for. I'm not talking about anything that's beyond our financial capacity to achieve. 8 billion, we've already raised close to $900 million. And we haven't done that by taking money out of the operating budget. What we've done is, we've done it by reprogramming our debt, by basically restructuring our debt, by issuing more bonds based on -- based on our debt service capacity under the cap. So, we have done things in creative ways so as not to -- so as not to drain -- to 60 School District Budget - 4/18/05 drain the operating budget of the type of revenues that would detract from our ability to invest in the classroom. So, when you look at this capital plan, the debt service on this capital plan, once you've adjusted for the refinancing of existing debt and the -- and the issuance of new debt once -- and the amortizing of that debt so that you're not spending additional money until the old debt is being retired, the drain on the operating budget is very modest, to say the -- you know, to say the least. But clearly, there are things that we're not going to have the capacity to do unless we receive additional resources. But the things that I summarize, the early childhood expansion, the curriculum instruction reforms that we have all but completed, the honors and gifted and accelerated programs, to break up our high schools into small schools, the magnetizing of many high schools so that we can expand magnet options, the enrichment things that 61 School District Budget - 4/18/05 we're doing in the classroom, the classroom modernization. These things are in our five-year financial plan. And our five-year financial plan is based on a number of assumptions. It's based on the Governor's budget as introduced, with the exception of the alternative schools money that the Governor's Office always takes out and the legislature always puts back in. So that's about the only thing we've added to our estimates because it's always done; it's a tradition. It's one thing we've have added to the estimates; but otherwise, we're using the Governor's budget. And we think there will be more money in education, not less than the Governor has proposed. Our assumptions about what's going to be available through the City's own five-year financial plan; so, we're not asking for anything more.
We're just basing our assumptions on the City's five-year financial plan and on what we already know we're going to get from Washington. 62 School District Budget - 4/18/05 And as you know, we're going to receive a very reasonable increase in Title I this year and we factored that Title I into the School District's budget. We've also adjusted that budget to assume the continued growth of charter schools, although a reasonable control growth of charter schools. So, again, this budget is not dependent on something that we're not going to get, and it's not excluding expenditures that we're going to get stuck with. But if we're going to want to sustain -- If we're going to sustain these reforms beyond 2008, 2009, we're going to need to continue to work with the legislature on a couple of things. We're going to -- We've asked the legislature for additional funding for alternative schools. We have asked them for $8 million more than they've appropriated us in the past. We've also asked that the legislature fully fund the 30 percent charter 63 School District Budget - 4/18/05 reimbursement, something that they began to do or that they approached to do in last year, but it's not in the current budget. They didn't increase the charter reimbursement line this year. And we're lobbying the caucus and our legislative leaders in order to do that. But the things that we're requesting are not to balance the budget this year, next year or even the budget in 2008. We're looking at getting those things now so we can keep -- we can keep the budget balance beyond 2010. And if we -- If we get the full funding of the 30 percent charter reimbursement and the additional alternative school money, then we can guarantee that the budget will remain balanced beyond 2010, without any sort of cutbacks or any sort of downsizing in the programs that are available. Now, some people asked the question, well, what about a rainy day fund? What if there are unexpected cuts at the Federal 64 School District Budget - 4/18/05 level that you haven't factored in? Or what if the legislature freezes funding at the state level for one year? If those things happen, this School District literally has a built-in rainy day fund, because most of reforms, most of our reforms are not mandated reforms. In other words, they are not entitlements. We consider them to be in entitlements because our children deserve them. But we have the flexibility. We have broad flexibility to make adjustments in this budget, whether it's after-school extended day, whether it's summer school, whether... We have -- We have broad -- We have -- We -- Because so much of our budget is not mandated, it gives us maximum flexibility in a crisis to make adjustments, without undermining your core mission which is to provide quality instruction during your day programs, you see. So, there's almost a built-in rainy day fund in our ability to in effect reprogram dollars in a pinch. 65 School District Budget - 4/18/05 But we don't anticipate that we will have to do that because, again, we've laid out our budget, and we have based our budget assumptions on the -- on what I consider to be cautiously conservative estimates on what the legislature will do and what Harrisburg will do. I've said a lot. I certainly welcome you to spend time going through the packet. I've got the entire management team here. They will be able to answer any questions or any issues that you may have of concern. There are a couple controversies in this budget. Let me explain them because one of the things we don't do is, we do not sanitize. We just lay it on the line. The converting of child/parent centers to Head Start will be controversial, but the bottom line is, we have an opportunity to serve 2,000 more children, and we need to seize that opportunity.
And let me point out that there are 500 providers out there that receive either 66 School District Budget - 4/18/05 indirect or direct state reimbursement and it's time for us to -- to -- to -- to take full advantage of that. So, we will obviously work with the couple hundred students, parents of the couple hundred students that will be adversely affected or pre-students, I should say, to hook then up with one of the individual providers. There will be about -- There will be a number of positions that will be affected, in other words, individuals who are currently working in the child/parent centers. We're going to do a couple things. The first thing we're going to do is, we are going to try to place those individuals who are qualified into other positions open and available in the early childhood programs. The second thing we're going to do is issue the balance or the rest a temporary certification which will allow them to work in our School District Head Start programs. And that temporary certification 67 School District Budget - 4/18/05 will last until -- will last until June of 2006, when the No Child Left Behind mandate, highly qualified mandate, is instituted. Then we're all subject to that. So, we hope to minimize the displacement of any individuals by -- by taking those who are already certified and skilled and putting them into the appropriate areas and to vacancies that exist, and then to temporarily certifying -- temporarily certifying those who are not skilled and working with them over the next year to get them skilled. Second issue that will generate some controversy is the literacy intern program. This year we're phasing out the literacy interim program. Let me say that the literacy intern program cost the district about $110,000 a literacy intern over three years. The literacy interns are paid about $2,000, $3,000 less than teachers, yet this is not a full-time classroom teacher. We're not going to be able to 68 School District Budget - 4/18/05 sustain our class size reduction initiatives. We're not going to be able to permanently get rid of leveling. We are not going to be able to permanently get rid of splits, while maintaining a literacy intern program that cost us $22 million a year. Now, what we are going to do with the literacy interns is the following: We're going to allow those literacy interns that are interested to my great -- to our middle grades literacy intern program, where we have shortages and where we want to recruit where we have serious recruiting needs. All the literacy interns are primary grade literacy interns. That's not an area where there's great demand. That's an area where we have a glut of applications. Middle grades is where we need the teachers. Secondly, those literacy interns that are close to certification, we are going to provide emergency certifications which will allow them to work in the district and will give them a year to get their full certification. 69 School District Budget - 4/18/05 So we're going to work very hard to place those literacy interns who are close to certification in schools, and to shift those literacy interns that are interested in spending another year and interested in the middle grades to move to the middle grades. But right now I think it's barely 30 percent of our literacy interns end up getting their certifications. So, if you're going to spend that kind of money on a teacher recruitment program, you spend $110,000 per student and you're only getting less than one a in third chance, it's not an effective expenditures of funds. And again, you know, we're -- we can't -- we can't do all the things that we want to do and continue to, you know, use our funds in a way that are not cost effective. We are also going to take a portion of the savings from the literacy intern budget and we are going to use to it finance our university intern program.
, The Philadelphia Education Fund, who currently 70 School District Budget - 4/18/05 administers the literacy intern program. Our goal is to have -- Our goal is to have about 1500 university students working in our schools as teacher aides, as teacher assistants, as counseling aides, as counseling assistants, in other words, close to three times the number of literacy interns. So, there's going to be more help in the classroom rather than less if we spend -- if we spend our money wisely. Also, finally, there's one other controversy in the budget -- two other controversies that I want to point out. s. s. What we have told the principals is something that they've long asked for. A. A. vacancy to hire a school staff assistant, to hire a school climate assistant, a new position fully certified, created by the School District, to hire a lunchroom attendant, to staff a parent help desk, you 71 School District Budget - 4/18/05 can do that. One school, for example, did not fill their literacy intern program -- did not fill their sole literacy intern position, added $12,000 to their school climate budget, and hired three full-time aides to work on school climate and two part-time aides. So, for the cost of one, they literally brought five people in. We spend $22 million on 400 literacy interns. We can hire well over -- We can hire well over 1,000 -- I'm sorry. s. Sorry about that. s, school climate assistants, with that same amount of money. A, but to have schools -- have schools with three or four school climate assistants, and they will provide more numbers and they will provide more staffing. s from the community, so we can have a larger community presence in the schools. But we've left that choice to the principals. We basically said, if you have a vacancy and you want to go out and recruit two or three or four people for the price of what you were paying for one, you can do that. We will train them. We will help you recruit them. We will help provide continual training. So, again, like the early childhood programs, we're trying to spend our dollars in a much more cost effective way. And then finally -- and then finally, we have -- the School Reform Commission has authorized the management team to begin privatizing certain custodial services. Now, let me point out so I can make very clear that we're not talking about eliminating anyone's job. What we're talking about doing, as we expand, and as we build new schools, as we 73 School District Budget - 4/18/05 have new branch schools, and what we're -- and as we restructure our high schools, what we're looking at doing is, we've got an authorization to do privatization in 6 schools. 7 The strategy is simple. We're going 8 to take the personnel from those 22 schools, 9 and we're going to dispatch them to our other 10 schools to provide additional staffing 11 support, to provide additional staffing 12 resources. 13 And then what we will then do is we 14 will -- we will contract out with custodial 15 companies, most of which will be local, who 16 will then hire union workers to provide 17 custodial services in those schools. 18 So that there's no confusion -- So 19 that there's no confusion, we are not talking 20 about eliminating a single custodial 21 position, period, not a single custodial 22 position. And I'll be more than happy to provide you with that commitment, Madam President, in writing. What we are talking about doing is, 74 School District Budget - 4/18/05 through attrition, doing more out sourcing and privatization. I will tell you this -- I will tell you this: That the average absentee rate among custodial services on Fridays and Mondays is percent, and the average 8 absentee rate during the week is 15 to 17 9 percent.
10 We cannot sustain -- We cannot -- 11 That means the custodians on the job are 12 getting overworked because not only do they 13 have great responsibilities, but also when, 14 you know, one in four and one in five are not 15 showing up -- and I'm not counting the 16 individuals who are on disability -- that can 17 create -- that can put a strain on the 18 system. 19 But where -- We continue to have 20 dialogue with the -- with 1201's leadership. 21 In fact we're meeting today. We anticipate 22 meeting tomorrow to see if we can work 23 something out. 24 But I want to reiterate... I want 25 to reiterate that -- because I don't want any 75 School District Budget - 4/18/05 misinformation being put out. We're not talking about eliminating a position, a single position. What we've really tried to do to bring this School District into balance, to balance the budget and to invest more money into the classrooms, is to do things through attrition and to do things -- and to phase out things gradually. We have really tried with great care to reprogram our dollars but to maintain that human face. So we think we can bring more resources to the table and at the same time expand the number of school maintenance options without adversely impacting a single employee in that district. So that's basically where I'm at. I don't know... Now, we'll open it up to questions. Wayne.
Excuse me, Mr. Vallas, I believe that you would like Mr. Harris to testify at this time.
We do have 76 School District Budget - 4/18/05 a number of Council members that want to be recognized. So, I assume that at this time we're going to hear from Mr. Harris.
Good morning, Council President Verna and Chairwoman Blackwell and distinguished Council members. Thank you for this opportunity to share with you the financial status of the School District of Philadelphia. I am pleased to re-emphasize Chairman Nevel's point that the proposed fiscal year 2005/2006 budget that we present to you today is balanced. And we estimate that we will also finish the current 2004/2005 fiscal year in balance. This is the last time that the School District of Philadelphia completed two consecutive fiscal years with balanced budgets was 1998, '99. These two years of balanced budgets will allow us to fully preserve the $56 million fund balance remaining from the 77 School District Budget - 4/18/05 deficit funding bonds issued in the spring of 2002. The School District's return to financial stability would not have been possible without the steadfast and continuing financial and legislative support provided by City Council, the City of Philadelphia and the Commonwealth of Pennsylvania. The City's commitment of $45 million in additional annual funding and its approval of the School District's $300 million deficit financing bonds have been essential to the district's financial recovery. The achievement of financial stability is not, however, a meaningful goal in and of itself. Financial stability is meaningful because it enables the School District to implement its educational reform agenda and to keep those reforms in place for the expended period of time needed to bring our students' performance up to standard. Over the past three years under the guidance of the School Reform Commission, the School District has seen increased test 78 School District Budget - 4/18/05 scores, improved school climate and student safety, significant investments in new and renovated school facilities and improved teacher retention and quality. Financial stability is an essential condition for these reforms and the progress they bring to remain in place. C. inherited and to ensure that the educational reform agenda being put into place would be sustainable. Since that time all major expenditures have been evaluated in light of their impact on the district's finances over a five-year period. The current five-year plan insures that the district can continue the educational safety and other reforms in the fiscal year 2005/2006 budget through at least fiscal year 2007/2008, while maintaining a positive fund balance. 79 School District Budget - 4/18/05 Relatively small adjustments in increased revenues or expenditure reductions of approximately $25 million per year will be necessary in order to extend our financial stability through the full five-year period ending in fiscal year 2009/2010. Because of the amount of increased revenues or reduced expenditures amounts to less than one percent of the district's projected operating and grants revenues over the next five years, I am confident that we can and will take the steps needed to remain financially stable through the next five years, without significantly undermining the core reform efforts that are currently in place. The School District has committed to continually seek additional savings and reduce non-classrooms expenditures. In addition to the over $200 million in cumulative savings that we have generated in the last three years, additional savings will be found in the fiscal year 2005/2006 budget through ongoing reforms in the access or 80 School District Budget - 4/18/05 Medicaid reimbursement, strategic sourcing, worker's compensation and transportation reimbursement from the state. Bond refinancing will lower the debt service expenditures by an estimated $5 million and more cost-effective funding structures will be implemented for early childhood education.
Finally, I would like to mention that the School District's proposed fiscal year 2005/2006 budget book is in a new and improved format that is intended to make the financial choices that the district has made more transparent and easily understood. The book opens with narratives that explain how the district's funds are being targeted to meet the goals and objectives established last fall in the School Reform Commission's declaration of education and measures that matter. The declaration of education establishes measurable targets with the district to meet by 2008 in early literacy, academic achievement, safe and orderly 81 School District Budget - 4/18/05 environment, community collaboration, equity, and efficient and effective support operations. The narratives in the new budget book also include a portrait of the district in 2008 that explains how the many educational, safety, capital and other initiatives currently under way will substantially reshape the School District by 2008 and help accomplish the declaration of education goals. While we are pleased that the fiscal year 2005/2006 budget that we present to you today is balanced and funds our reform initiatives, the needs of our students are likely to outpace our resources for the foreseeable future. It is only with your ongoing support and mutual partnership that we will see further change and productive progress toward our financial and educational reform bills. Thank you.
Thank you very much. 82 School District Budget - 4/18/05 Are there any other further statements or presentations from School District? Fine.
Thank you very much. The Chair recognizes Councilman Clarke.
Do we have a five-minute limit, Madam Chair? Do we have a five-minute limit?
Is that five minutes on the question or the answer. (Laughter.)
Five minutes, period. So, that means two-and-a-half each. (Laughter.) 83 School District Budget - 4/18/05
That means I have to ask multiple questions. All right. Thank you. Good afternoon, gentlemen. I want to ask a couple of quick questions and I'll come back on the next round. Mr. Vallas, on you talk about the numbers of high schools right now. We have 38 high schools, relatively large schools, and you talk about increase in the number of schools. And you talk about a student/teacher ratio of 31 to 1, but you don't reference what the ratio will be upon the implementation of the change in the number of high schools. What do you anticipate?
The reason I didn't put 22 it in is that I didn't want to put anything 23 in that I couldn't absolutely guarantee. 24 So... But that's the plan for the student ratio. 84 School District Budget - 4/18/05
Okay. Because that's... Okay. I think that's the most important aspect of the reconfiguration of high schools, being able to get the numbers down.
One of the other things that you talked about -- And to some degree I've had to wrestle with this -- is the elimination of middle schools. And we've had a number of middle schools in my district that are in the process of winding down, so to speak. And sometimes it's been somewhat unpopular in the communities. And you talk about the statistics that show that that's the most prudent decision. Can you talk to me specifically about that, the statistics you show, what they show.
Two things. Well, three things, basically. Middle schools generally have lower test scores than primary grades. And particularly sixth grade has 85 School District Budget - 4/18/05 always been one of the worst performing grades in this School District. So, the academic performance is much... you know, is not as good as the primary schools. And there seems to be a dip in sixth grade. That's number one. Number two, middle grades tend to be your more disruptive grades. For example, two years ago I had more teacher assaults among sixth graders than I had among any single grade in the school system. That's the transition grade. In fact, just by contrast, I think there were 130 -- And we define teacher assaults very broadly. That includes threatening and intimidating too. So, unlike a lot of districts, we report and define everything in the broadest terms. But I think we had something like... And I'll give you the confirmation. It was something like 136 teacher assaults among 6th graders, eight among 12th graders, just to contrast. The second biggest class was 9th grade. So, again, those are transition 86 School District Budget - 4/18/05 grades. And then the third thing is the exodus. There's a big exodus between fifth and sixth grade. Parents will tell you, if I can't get my child into these three or four middle schools, I've got to send my child somewhere else. Because -- Because the way the middle schools are designed, their size, their location, children have to go a much further distance to a middle school, as opposed to their little neighborhood K to 5 school. That causes a big exodus, which I think hurts the School District and the City at large.
So, you think the continuation -- physical continuation of that student in that location up to eighth grade --
Most definitely. But 87 School District Budget - 4/18/05 what's important here is that we make the investment. In other words, all the middle grades have curriculum instructional models now. We're doing intensive middle grade teacher recruitment. We're requiring that all the K to 8 schools have classroom climate managers, someone assigned to focus exclusively on school discipline and school climate. You know, the classroom modernization campaign will focus first on the middle grades. The school is adding sixth, seventh and eighth grade, those schools in transition. So, if we're going to add middle grades, we get an opportunity to do it right, we might as well do it right.
Do you think that because statistics show that sixth grade on or to some degree the most disruptive years, as it relates to students, that that could have a negative impact on the lower grades in the same school, in the same 88 School District Budget - 4/18/05 physical --
You know, it really doesn't in part because there are so few of them. For example, I went to the graduation at the Dick School. And they had, I think 27 eighth graders or something like that in the graduation, very small. If they would have gone to that local middle school, they would have been one of 200. You know, the eighth graders became the leaders. When you put that many children in that big a school, not only physically but numerically from that many different neighborhoods, the survival instincts take over. You know? The children don't have a chance to grow comfortable, to become the older statesmen, so to speak. They don't have a chance to mature.
Are you suggesting that the younger students intimidate the sixth, seventh and eighth graders?
Oh, no. What I'm 89 School District Budget - 4/18/05 saying is, when you take that many children from middle grades and, you know, suddenly put them in a school where 80, 85 percent of the kids do not know each other, you know, and, you know, the children are undergoing physical, psychological, emotional changes... I mean, they're entering puberty, that can create -- that can create a real disruptive combustible environment. And the children are focusing more on competing and surviving than they are studies. But when they have an opportunity to stay in a building for ten years literally, if they've been to pre-school or early childhood, to work their way through that building, suddenly they're the upper classmen. They're sixth graders, seventh graders and eighth graders, you know. They know the children who they go to school with. They've been in school with them for six or seven years. It's -- because there is some mobility. It's a much more relaxed 90 School District Budget - 4/18/05 environment. They have a tendency to excel. They have a tendency to thrive. You know, I always point out that you don't see a whole lot of parochial middle schools around, you know. And even in the suburbs where you do have the occasional middle school, that middle school a lot of times is fed by one feeder school, not four or five feeder schools, see, so...
Do you think that... And I understand, you know, the statistics may show one thing as it relates to sixth, seventh and eighth graders. Are there any statistics that show anywhere where the conversion to K to 8 has proven to be an effective model?
Yes, it has. And it's quite timely. We just entered into a report from John Hopkins. And we took a look at several data points. I'm Greg Thornton. I'm Chief Academic Officer of the School District. Some of the data points we took a 91 School District Budget - 4/18/05 look at were student attendance. We took a look at staff attendance. We took a look at teacher turnover. We took a look at principal turnover. And as a result of that Hopkins report, it indicated that the transition to a K/8 structural organization is certainly very prudent. When you look across America, folks are grappling with the issue of middle schools. And one article that I read lately, they wanted to return to what we once knew as the K/12 schools or pre-K/12 schools. As we began looking at data not only from student achievement from soft data, with respect to attendance, with discipline referrals, with respect to suspensions, all indicate that it was a very wise move. The only outlier in the report was that mathematics was a challenge. And one of the things we're looking at as we begin to move forward is, how do we ratchet up so youngsters have an opportunity to have higher level mathematics. And that was the only indicator of 92 School District Budget - 4/18/05 the Hopkins report that spoke to the fact that we needed to look for opportunities.
The report was looking at a longitudinal study of youngsters going from 6th grade to 12th grade, looking at four independent variables. The variables were mathematics, reading, behavior and attendance. And we were able to tease out of that, because we have now control groups. We have schools --
No. Where -- Where... They did an analysis. On what School Districts?
Correct. It was done by Hopkins. Belfence did the -- did the study. It was done in conjunction with our research.
Hold on. Hold on. Let me understand. 93 School District Budget - 4/18/05 We're saying that... We're essentially just starting this program. How have they done an analysis on the program that we just started?
We have K to 8 schools, and we have middle schools, and so the analysis --
Currently we've... Well, most -- How many K to 8 schools do we have now? Fred? Or Nilsa, how many K to 8 schools do we have now? 63 K to 8s. We've always had some K to 8s.
Well, most of them -- Most of the K to 8's -- Only a handful of schools have done the conversion already. 94 School District Budget - 4/18/05 So, we've always had about 50 or 60 -- We've always -- I'm sorry. We've always had, I believe, 67 K to 8s. Okay? That's the number we have used, 67, 68 K to 8s, because by '08 we'll have 130. So, we've always had K to 8s.
And that was the control group that was looked at as we moved forward. They were looking at a determination on those four indicators, and we were able to just aggregate the following data out. And the data basically pointed that we need to do some work around the area of mathematics.
Okay. Since the bell didn't go off, I'm going to keep asking questions. You indicated earlier, actually, in your testimony, your written testimony, about 95 School District Budget - 4/18/05 the support that you were requiring from the state. You thought it was a relatively minimal request. Realistically, do you think that you'll be successful in receiving that support?
Yeah. We will -- We'll be fine through '08, unless, though, we get full funding of the charter school reimbursement. And our assumptions about both the state and Federal Government are based on what we already know is on the books. For example, our budget already assumes -- Because of the Federal budget lag time we already know what we're getting. The Federal Government is now working on -- the budget that they're debating right now in Washington is for next year's allocation, not this year. But we'll be in good shape beyond -- Moving beyond 2008, though, if we don't get the state to fully -- to fully fund the 30 percent charter school reimbursement which 96 School District Budget - 4/18/05 they're mandated to do, and if we don't continue to get additional money for alternative schools, then we'll have to go in and make cuts elsewhere in the budget, you see. But both -- Those two things we're lobbying for everyone else is lobbying for. We're also lobbying for something that is well within the state's financial parameters to provide. So, we're not -- we're not calling for -- We strongly support school funding reform, but we're not asking -- What we're asking here is within the -- within reason. And -- And -- and we feel optimistic that we're going to get at least part of that this year. If we get those -- If we get the full funding of the charter 30 percent reimbursement this year and the alternative school funding in Harrisburg and Reading -- and a lot of other School Districts are asking for the same thing -- then the financial plan will be able to guarantee a 97 School District Budget - 4/18/05 balanced budget through 2010. If we don't, we'll try again next year; if we don't get it next year, the following year. Then we'll have to begin to do some downsizing after 2008. So, we're good to go to 2008, and with the state, just addressing the alternative school, charter school reimbursement issue, we'll be good to go beyond 2010.
Okay. I'll ask my last question on this round. I'll come back. Can you give me the status of the C.E.P. schools? Have they been increasing what the --
There is a -- There is a -- There is -- There is a report that has been put out that -- and we're waiting for Temple to release it. It's a question of is it the state's report, our report or Temple's 98 School District Budget - 4/18/05 report. And -- and we hope to get it out maybe even before our hearings conclude tomorrow. And... But that report is a independently commissioned report to evaluate C.E.P.s performance. If you look at , lays out the disciplinary schools. And it identifies the C.E.P. schools. They have three sites: Allegheny, Hunting Park, and Miller. And it shows their capacity. But the report, it's my understanding, is very positive, in terms of the overall performance of C.E.P. and the children in the C.E.P. schools. In fact, I think one of the recommendations of the report is that children be allowed to stay in C.E.P. until graduation. The state law actually mandates that we return a child to their neighborhood school after one year, so we can't like permanently expel. But one of the recommendations emerging is that children be allowed to stay 99 School District Budget - 4/18/05 there and complete their graduation rather than sending them back to their neighborhood school. But I will tell you this: That C.E.P.s test scores have improved, and the number of incidents in C.E.P. schools has dramatically declined. They've shown some of the biggest drops, in terms of our incident reports. Also, some of the preliminary reports done on the other alternative schools and the accelerated schools has been very positive. In fact, they've been the subject of a number of newspaper stories over the next four months. But I'm going to try to get you a copy of that report, hopefully within the next to 48 hours. 20
I understand the 21 need to get disruptive students out of the 22 mainstream class structure. 23 But sometimes when you remove a 24 problem, you kind of put the problem in another location and just forget about it. 100 School District Budget - 4/18/05 And I'm glad to hear that those students are progressing in that particular program.
All the disciplinary schools have to conform to the No Child Left Behind mandate. So, we evaluate them like we would evaluate any single school. Whether it's charter, privately managed, disciplinary schools, public schools, we do the same evaluation, you see. And because they are contract schools, we can hold them even more accountable because we can take students away, cap the number of new students coming in. We don't have that same flexibility always with the public schools. But we appreciate -- Your point is well taken.
You are quite welcome. Councilwoman Tasco. 101 School District Budget - 4/18/05
In your -- This little thing here, under your operating budget.
Could you explain the decline and the requests from your revenue sources and other financial sources from 2005 of the $1,963,000 to the decline to $1,914,000.
All right, Councilwoman. This is the accountant's fault. I just want to be clear about that. The accountant set rules that we have to follow. What's happening here is the district is required to recognize certain things as revenue. So, they show up in the left column, the 2004 column, the 2005 column of . 102 School District Budget - 4/18/05 And then we then put them into reserve. That's the $34.3 million, the second from the bottom of that column. And then we bring them out of reserve and spend them in the next year. So, I just want to explain what this -- what those things are because it is confusing. We are -- The district is selling its administrative buildings, as you probably have heard.
Yes. And we are receiving approximately $25 million for that. The S.R.C. was very clear that they did not want to take that $25 million and spend it all at one time. So, we have to show the $25 million coming in as revenue. But then we take $20 million of it out, and put it aside in reserve. And then we spend $5 million of it each year for the next four years. So, that $20 million being put into reserve is part of that $34.3 million number 103 School District Budget - 4/18/05 at the bottom. And then the $5 million that's being spent the next year is part of the $21.2 million just to the right of $34 million and the change in reserve in fiscal year '06.
And the other thing that's happening there is that the School District has done a very large early retirement program. And the early retirement program helps us by lowering our annual salary costs because we lose people who are at high salaries and replace them with people at lower salaries. It costs us a one-time cost to do that. And it's a cost that we would have to spend anyway no matter what. It's a cost for paying out unused vacation, unused personal leave, and I believe 20 percent of unused -- or it's either 20 or 25 percent of unused sick leave. So, when we did the early retirement, we tripled our cost, our annual 104 School District Budget - 4/18/05 cost, for those costs. And then we have -- we are in the process of bonding out that cost. So the bonds that come in for that show up once again as a revenue, and then they get pulled out and put into reserve and spent again the next year. So, it's -- I wish the accountants wouldn't force to us show it this way because it's unnecessarily confusing. But really, it's being driven by two revenue sources coming in this year that are then being spent over a couple of years. And the two are the sale of the buildings and the early retirement costs.
And again, I just have to make the point. The early retirement thing is... You know, we will save a considerable amount of money because of the number of teachers who have taken early retirement. But we just can't pay $40 million, $45 million right out of the box. So, we can do a borrowing to pay off that. And then we 105 School District Budget - 4/18/05 use some of the savings from the salary differential in the out years to pay off the bond. But where it shows up, it looks like -- It makes the numbers look a little funky, so to speak.
So, you can sell off bonds to take care of that operational obligation?
That's right. And then the savings... Then we factored in the debt service on those short-term notes from the savings in -- obviously having 800, 900 fewer teachers who are -- who are close to or making -- close to retirement age salary, as compared to new teachers coming in. Let me point out that 12 percent of our teaching force has changed just over the last year alone, 1400 new teachers I believe last year. So the bottom line is, the teaching core is undergoing transition. A lot of people are retiring, and certainly 106 School District Budget - 4/18/05 appropriate. And the early retirement has helped jump start that retirement. But we don't want to bust the budget by paying out a one-time huge early retirement bill. So, this is something that the rating agencies support. You know, we have to get approval from the rating agencies. It's a very common procedure, but it looks it out of whack. It makes the budget look -- It makes the numbers look a little confusing. And also, while the essence -- While we needed to receipt the money from the building sales, the S.S.E. didn't want us to use that $25 million to balance our budget this year. That would not have been fiscally responsible. They wanted us to spread out the savings from that building and to put it in our expenditure plan over the next four to five years. So, it's part of the five-year plan. It's not just: We got the money; great; we're going to spend it in one year. 107 School District Budget - 4/18/05 Now, having dependency on a one-time revenue source like that is not fiscally responsible. So, that's why the numbers show up. Those are the two unique things: The early retirement, and the huge receipt of funds from the sale of our three properties.
Okay. I notice under your operating revenue you receive $126,000 from the Federal Government?
Yes. Almost all of our Federal revenue comes in the form of grants which these documents don't show. We receive --
-- I believe it's in excess of $300 million in grants. The little tiny bit that shows up there is actually a payment via the Philadelphia -- the -- it's a payment that we receive as a result of public housing. It's a little tiny part of the Federal law and it shows up in our operating. Everything else shows up as grants. 108 School District Budget - 4/18/05
It probably didn't deserve a line. It was too small to deserve a line, quite frankly.
So, the $300 million in grant... We've talked a lot about the No Child Left Behind. Does the district capture the cost of providing this program? What percentage of that cost is reimbursed by the Federal Government?
Well, we -- To answer that a better way or to give you a good answer to that, we have probably gotten close to a 50 percent increase in Title I over the last, would you say, Wayne, three or four years, including this year?
That's a substantial increase in title one. It's not all we need but it's certainly considerable, compared to past years. I mean, in the last three years we've gotten more Title I money than we got 109 School District Budget - 4/18/05 the -- during the Bush administration than probably the entire -- increases than the entire eight years of the Clinton administration. It's not meant to be a point of criticism because the Clinton administration put more money in Title I, too. Now, is it all that we need? The answer is no. To say how much of the -- how much of the No Child Left Behind mandates are being covered by the Federal Government, it's hard for me to calculate because so much of the No Child Left Behind mandates are things that we would do anyway, you know: The school choice options, the supplemental education services, the -- you know, the testing and accountability and assessments, you see. In many respects, the reason we -- it's been so easy for us to comply with No 22 Child Left Behind is because in many ways the things that No Child Left Behind has mandated are things that this district was going down the trail to do anyway. 110 School District Budget - 4/18/05 I will tell you this, though: A more important unfunded Federal mandate, because if we consider to -- if we continue to get the Title I increases in future years that we got this past year, you know, that's -- that's going to be more than satisfactory for us. But I'll tell you, the one mandate that the Federal government does underfund, and that is underfunded everywhere, is the special education mandate. The Federal government funds, I think, about 80 percent -- percent of the special 15 education mandate. They're mandated by 16 statute to fund 40 percent. 17 Now, that 18 percent is up from 7 18 percent three or four years ago. But that is the one Federal mandate that clearly imposes the greatest burden on local school districts, and that's the one mandate where there clearly is a shortfall. So, while there have been increases in special education funding and reimbursements, it doesn't come close to 111 School District Budget - 4/18/05 covering the cost. And that impacts not only large urban districts but suburban districts and rural districts alike. So, I can give you a specific number on that. I think it's percent. It might 7 be a little less. 15 percent or 18 percent. 8
I'll print that number, 11 but it's in the teens, and it's supposed to 12 be funded at 40 percent. 13
Let me point out, we 16 spend about $250 million in special ed. We 17 get about $42 million reimbursement from the 18 Federal Government. Of course, we get money from the state too. Now, not all the $250 million is spent on Federal mandated programs. But the bottom line is, you can see that there's a disconnect.
Okay. Let's go to the early childhood education program. 112 School District Budget - 4/18/05 You said that the staff who worked in the early childhood comprehensive... Is it called comprehensive program?
You say that right now there is no -- there are no 9 standards for their employment, and that you will give them a temporary certification so that they can become certified. What are the certification requirements? What will be the certification requirements? And how likely is it for these workers to receive those requirements?
I'm going to ask Donna Pakarski, who's our esteemed head of our early childhood programs and doing a great job, to answer that question or any other questions you may have on the subject.
I'm Donna Pakarski, 113 School District Budget - 4/18/05 officer for early childhood programs in the School District. We're running crystal reports which show everyone's credentials in that program. Many of the center leaders and instructors have bachelors degrees. And so, it wouldn't -- what we're looking at is what it would take to get them certified next year. Some of them may have to take the practice exam. Others have bachelors degrees in elementary ed and would need a few courses in order to be certified as early childhood teachers.
Well, prior to this new program, did they meet the criteria to run the centers?
In some instances an associates degree. The center leaders had to have bachelors degrees, but the instructors and assistant instructors only needed 114 School District Budget - 4/18/05 associates degrees or 60 credits. So, some of them may not be able to get certified in a year, while others are very close to being certified.
The net impact when we do the numbers is a net loss between -- there are 517 in C.E.L.C. right now. I can't remember the number. 300 and some. But the bottom line is 162 employees. But as I said, we're looking at the crystal reports. That number may be way lower if we can give folks emergency certificates so that they can be certified by '06 and the No Child Left Behind requirements.
We're supposed to have highly qualified teachers by '06, and that means certified in their content area.
So, if they're not able to get their certification within 115 School District Budget - 4/18/05 the year time, they will be laid off?
Tell me: What does this program -- What is the difference between this program and the existing comprehensive program?
Surely. The comprehensive program right now operates from 7 o'clock in the morning until 6 o'clock at night. It services children from zero through 11 years of age. We have infants and toddlers. We have children in pre-school, three- and four-year-olds, and we have children who utilize the service before and after school. The new program will be targeted to three- and four-year-olds in order to get them ready for school. It will be operated like our Head Start program, with certified teachers and 116 School District Budget - 4/18/05 classroom assistants, and will allow us to give a pre-school opportunity to many more children than we are servicing through comprehensive early learning centers.
Also, let me point out that right now there's about 500 private providers who provide comprehensive early learning opportunities. They're all subsidized by the state. There are more than enough providers to cover any child who is in a current district-run comprehensive learning center. They could easily be migrated or referred. And we're going to work to refer them because I think there's, what, 242 students who would be affected?
There's 242 infant toddlers who would be affected under the program. And they can easily -- They can easily be put in the more comprehensive -- private comprehensive early learning program, because the approach at the state level has been to do more privatizing of these services 117 School District Budget - 4/18/05 to provide. For example, right now if you're a parent, if you're the -- if your sister has a toddler, you could provide comprehensive early learning services for that toddler and you could get reimbursed by the state for it. In other words, the state program is all designed to increase substantially the number of providers out there and to provide subsidies for those providers. So, there are enough private providers to do what we're doing, plus allowing to us take our centers, convert them to Head Start which is a much more rigorous, much better program, and to serve many more kids, you see.
Okay. So, you're transitioning that out into the community that's run by the Urban League -- supervised by the Urban League, I think?
They're supervised by 118 School District Budget - 4/18/05 D.P.W., actually.
Also, let me point out that most of these centers are under populated. I have a center where I have six or seven employees, and I have six or seven kids. Because, as you know, the centers are located in the areas that necessarily do not have as great a need. The centers are also losing children because more and more children are migrating towards the private providers, you know. I mean, if you have a... If you have a child, and you have a relative who's providing the service -- maybe service for three or four kids -- they're saying, well, I'm going to put the child with the relative. I'm not going to send them to comprehensive early learning center. So, the bottom line here is -- is, given the fact that the centers are so under populated, and there's enough private 119 School District Budget - 4/18/05 providers out there to provide these services, we would prefer to shift the money to Head Start type programs which are far better, far more rigorous, and also use a part of the money to dramatically expand our teen pregnancy program -- the targets are pregnant teens and their babies -- and to do our home outreach program that is designed to target pregnant teens who have left school, to raise their babies, you see. And all told, we will experience a net increase. We'll experience close to a net increase of children being served through these three quality programs, an aggregate on top of the children being served now by about 2000.
Okay. I'm still on the clock, I guess. Let's talk about the N.T.A.s, then. You explained it in terms of... I was just reading the article 22 in the paper today. So I...
Oh, don't believe everything you read. (Laughter.) 120 School District Budget - 4/18/05
I wrote my notes down here. And I can't read my notes. Let's just go over that. How many N.T.A.s do you have now?
Yeah. We have about -- We have about 400 N.T.A.s, about 200 in the high schools and 200 in the elementary schools. And the total budget for them is about $22 million. Now, the average compensation ranges from $50,000 to $60,000, when you include the benefits and everything. Let me also indicate that there's no 15 requirement for training, no certification requirements. Am I correct? Kick me when I get off track here. This is from the Director of Human Resources. Also, the assignments over the years have literally been dictated more by the collective bargaining agreement than by the principal deciding how to best deploy that individual. So, what we decided to do in this year's budget is to tell schools that if they 121 School District Budget - 4/18/05 like their N.T.A., they can keep them. On the other hand, if they have a vacancy, an N.T.A. vacancy, they can use that money to hire a newly created title. It's called school -- It's called school class climate assistant.
This is a person who is being brought in and trained. They have to have minimum certification requirements because we want them to be qualified under No 14 Child Left Behind. There are no similar requirements for N.T.A.s, I might add. And what this person has -- This person is -- The intent here is to train this person to be a school climate manager, to deal with disciplinary problems in the schools. So, that individual is going to be trained by our Human Resources Department, is going to be trained by our safety and security, Dexter Green, through our safety and security staff. 122 School District Budget - 4/18/05 This being person is going to be trained in behavioral management, behavioral therapies. So, we'll have an individual whose exclusive responsibility it is to be -- to basically help manage the school climate. Now, let me point out that if you have one N.T.A., for the cost of one N.T.A. vacancy, because I don't think too many principals are going to be laying off N.T.A.s. Principals who have vacancies are just not going to fill them with N.T.A.s. If you have a vacancy, for the cost of that one N.T.A., you can fill that vacancy with at least two -- at least two school climate assistants and one S.S.A.
School staff assistant. These are titles in the School District. These are classroom aides.
The N.T.A. makes -- The average compensation for N.T.A. is -- it 123 School District Budget - 4/18/05 exceeds $50,000.
$22,000 -- I believe it's about $22,000, starting compensation.
The S.S.A.s. They vary, if they have, you know, they can make maybe $10,000. $10,000, $9,000 a year for... They're part-time positions. Okay. There was a principal from one of the elementary schools and -- Ben Franklin for example. And he elected not to fill his N.T.A. position. And he took that money and he used about... I think about $20,000 in additional Title I that he had been allocated through the Title I formula. And he replaced the one N.T.A. with five people, three all-day S.S.A.s and two half-day lunchroom attendants. And so, he's got where he had one person doing school climate, he now has five 124 School District Budget - 4/18/05 people doing school climate. So, it's just a case of -- It's just a case of -- of bringing in -- giving the schools the opportunity to bring someone -- to bring more people in, and to bring people in who are specifically trained in school climate management.
Yeah. You know, N.T.A.'s -- They do a little security. They do hall -- They do hall monitoring.
But I mean, the new people, the C.S.A.s and the S.S.A.s, are they basically --
They'll -- They'll be trained to do -- They'll be trained to do behavioral modification. So, they'll be trained not only, obviously, to provide a big body to help -- you know, to help control disruptive students, but they'll also receive training to -- to -- to monitor an accommodation room. I mean, we're going to put them 125 School District Budget - 4/18/05 through the same training that our behavioral support specialists are put through.
What about the part-timers? You say they make about...
The S.S.A. -- The average S.S.A. -- And I stand corrected. The average S.S.A. salary is $12,500, with benefits. That includes benefits. It's a three-hour position.
Three hour? Are these positions subjected to collective bargaining?
The S.S.A. and N.T.A. positions are collective bargaining positions. We suspect that the classroom -- that the school climate manager positions will eventually be collective bargaining positions, too.
We won't be able to keep them from becoming collective bargaining positions.
I just have one more question and I'll be finished. I want 126 School District Budget - 4/18/05 to come back to the capital budget. You talked about possibly moving towards out sourcing your custodial positions through attrition.
And one of the problems you cited with the custodial workers that are hired by you is the absentee rate. What guarantees you that the out source company will have a better rate of attendance?
Well, you know, there are -- The -- The longevity of their contracts will depend on their productivity. You know, it's very difficult to move individuals out of the system that are -- are, you know, fully exploiting all their vacation, sick and comp days, and it's... And I have -- Right now I have over 1,000 individuals on disability, 1,000. Now, I have 22,000 employees and I have over 1,000 individuals, not just custodials, but I have 1,000 individuals on -- It's way out of 127 School District Budget - 4/18/05 whack. And this imposes a tremendous financial burden on the district, a district that is not exactly well funded in the first place. So -- So, you know, and when I talk about the 20, percent absentee rate on 9 Fridays and Mondays, I'm not including those 10 on disability. So, that creates a tremendous 11 burden. 12 Now, my experience when we bring 13 private companies in, obviously they have to 14 provide the staffing. Right now if I'm 15 understaffed, I have to pay overtime. 16 Okay. So, visualize this. And a 17 lot of times I pay overtime to somebody 18 who -- who -- who went on sick leave or took 19 off or wasn't -- or decided to have a 20 three-day weekend and they come back on 21 Tuesday or they come back the following 22 Friday. And then that individual is hired 23 to -- and earns overtime to basically 24 compensate for another individual who's not 25 showing up at work. 128 School District Budget - 4/18/05 And what this does is, it imposes a tremendous burden on the existing maintenance staff, and -- while at the same time imposing a tremendous financial burden because not only do I have to replace that maintenance person, but a lot of times I have to pay overtime to pay for that replacement. It's just not fiscally sound. Now, what we have said is this: What we would do is, we would pick 12 schools, and we would move those custodials 13 from those schools to other schools to 14 supplement -- to supplement the custodial 15 staffing in other schools. 16 We then privatize those schools 17 through private companies, and those 18 companies would be contracted out to provide 19 certain services at a certain price. 20 If those schools are not efficient, 21 if those schools are not clean, if those 22 schools are not adequately maintained, then those private companies will lose their contracts. But the bottom line is, City Hall a 129 School District Budget - 4/18/05 number of years ago out-sourced their custodial -- their custodial services for -- you know, for probably many of the same reasons that we have. And, you know, we need to do something. We cannot continue to -- An explanation has been used, well, the reason that the out sourcing is, the custodians are overworked and there's not enough staffing. You know, being -- You know, if you can't complete the job, that doesn't mean you don't come to work. And the vast majority of our custodials do a good job, but -- but -- but -- but there is a lot of absenteeism here. And a to percent weekend, 18 Friday and Monday, absentee rate and a 15 to 19 17 percent weekly absentee rate is simply 20 unacceptable. It's simply unacceptable. And 21 so, we need some additional options here. 22
Are you having 23 a dialogue with the union to discuss what 24 possible solutions you could come up with? 25
Yes, we are. We're 130 School District Budget - 4/18/05 continuing -- We're continuing our dialogue. In fact, we'll be dialoguing this afternoon after the conclusion of the hearings today and then we'll be meeting again tomorrow. So, we're going to see if we can't, you know, work out some accommodations.
Thank you very much. As you will see, we passed around some basic skills portfolio numero duos. This is the second. This is our second one, but we submitted two this time. And if you will note inside that the -- that's pictures from an actual safari in Kenya. And these portfolios have gone from Niger, Nigeria, Kenya all over third-world countries, and they work. And this is how I spend the money I raise. But the point of it is that we tried to help day care providers, especially those in home who do day care and pre-school, to help them have an academic focus for youngsters in neighborhoods. 131 School District Budget - 4/18/05 So, we wanted to share that. Usually I give Mr. Vallas one of the S.R.C. We mail them. Since I didn't, I thought I'd take the opportunity to hand them out. Just a little aside. Madam President.
All right. Since we did have a break in the schedule, and albeit the -- we've asked various Council persons and your staff, Mr. Vallas, we're happy to break until 1:, 30 if that is okay with everyone. Then we'll come back and finish testimony and see you soon. Is that all right with everyone? Thank you very much. Thank you, Madam President. (Recess from 12:33 p.m. to 2:00 p.m.)
Thank you for your patience, everyone. Our hearing should not last very much longer. We have three of my colleagues who have more questions was the situation when we recessed. So, now we will resume our hearing. Thank 132 School District Budget - 4/18/05 you all for your patience. Councilwoman Blondell Reynolds Brown.
Good afternoon. I want to start by simply revisiting the discussion we had earlier this morning, with regards to the good news which is that the shift you're making with regards to the comprehensive early learning centers. The good news is that 2,000 more children will be served; and the bad news, of course, that you've already addressed, is that there are about 1400 little people that will have to be transitioned. No. It's actually 243 infant toddlers who will have to be transitioned. Now, you mentioned that there are 500 child care providers in the City. And that's good. The piece of that, though, that I'm hopeful you will address is... Well, what we know is that not all 500 will provide the same kind of quality learning that we've already know exists with the -- and has already been documented by P.C.C.Y. 133 School District Budget - 4/18/05 So the ask is, if you have not already, to make sure that those families are aware of your more quality child care providers.
Well, we will do what we have begun to do with the supplemental education service providers. We'll identify who is out there, and then we'll recommend certain providers.
Very important. And speak again with regards to the teenagers, because we know the teen parents, if they are not sufficiently transitioned in a seamless way, they end up dropping out of school.
Well, as you know, last year and... Where's Donna? Donna, how many children are in the team pregnancy program?
Okay. Currently the 134 School District Budget - 4/18/05 cradle to the classroom program has 928 teen parents in that program. And the way the program works is, we identify the teen parent. We assign them a parent advocate, someone who can train that teen in basic parenting. We then work, once the baby is born healthy, to get the baby into an appropriate child/parent center.
Or a comprehensive day care. So, we will be increasing that by 500. So, we will have close to 1500 teen -- pregnant teens that we will be able to get into this type of program every year. And once again, it's not only going to benefit the children of the pregnant teen, but more -- but of equal importance, it's going to help train the pregnant teen on how to be an effective parent.
Okay. Let me shift the discussion to arts and culture. You covered a lot of material in the documents you sent us. But the fact is that 135 School District Budget - 4/18/05 65 of 276 elementary middle high schools in our City have neither art nor music teachers on their full-time faculty. And then another 110 schools have art or music teachers, according to the Picasso project. Just share with us the progress you've made over the past year, and what the plans are in the coming year in further broadening art and culture, drama, dance, music experience for the children in the schools.
Let me go to -- I've got to find the right chart here that summarizes our --
No. No. No. No. It doesn't provide you with the complete answer. But at least we could give you a summary chart. Indulge me for just one second, without taking away some of your time. This is the enrichment... Hold on one second.