DEPARTMENT OF EDUCATION Budget Reductions December 15, 2008

2 The Deteriorating Economy Requires Significant Reductions Across All Government Agencies November PEG $180 million for FY09* $385 million for FY10* In order to close the growing and substantial deficits in the City’s budget this fall, the Mayor required all City agencies in November to reduce their budgets for FY09 and FY10 by 2.5% and 5.0%, respectively. With the worsening economy, the Mayor announced that all City agencies would be required to reduce their budgets by another approximately 5% and to plan for a possible additional 2% reduction. *Adjusted from $185 million and $395 million. Budgets as of October 2008 December PEG Additional $526 million for FY10* For the DOE, these percentage cuts translate into budget reductions of:

3 Estimated Breakdown of DOE’s Budget – FY09 Post PEG FY09 Figures based on FY10 November Plan. Pension & Debt Service as of FY09 Adopted Budget Fringe & Pension included in all categories except debt service DOE Budget School Budgets  Teacher Salaries  School staff  School Supplies & Materials School Support Services  Food  Facilities  Transport  Safety 1.0 Restricted School Programs  Multiple Pathways  Learning to Work  Core Curriculum  Supplemental Education Services (NCLB) 1.2 Debt Service  Interest on bonds for capital projects 0.5 School Programs  Nursing  PSAL “Pass- Throughs”  Contract Schools  Special Ed / Pre-K Field Admin  ISC  SSO  CSE 0.3 Central Admin  Tweed (Payroll, HR, Legal Services, etc)

4 We Have Minimized Reductions To School Budgets Midyear cut in FY08: 2% from Central and Field and 1% from school budgets FY09 budget reduction: Total $200 million taken outside of school budgets Midyear cut in FY09: 6% from Central and Field (includes reduction of 475 positions) and 1% from school budgets Central and Field budgets represent 8% of the dollars available for reduction but have taken 16% of the cuts School budgets represent 66% of the dollars available for reduction but have taken 36% of the cuts

5 Bucket 1: $40 million* for a 6% cut to Central and Field Revise scoring of state assessments in Math and ELA, grades 3-8 Reduce meeting/conference expenses Cancel mid year teaching fellows program, reduce size of next cohort of teaching fellows Eliminate citywide science assessments Reduce training in DIIT Includes reduction of 338 positions for 8% of Central and Field positions through a further rationalization of these operations.* *Fringe savings not included here. Bucket 2: $27 million for an indirect impact on schools Reduce facilities work – will monitor cleanliness and make necessary repairs Elimination of 137 positions in the trades workforce and management Eliminate school bonuses for AS and WD on the progress reports

6 Bucket 3: Reduce school funds by $104 million for a 1.3% reduction in FY09 Schools were notified of targets on November 10 th Schools have through Nov 21 st to work with ISC/CFN/SSO to identify specific targets Guidelines on reductions were provided to schools An estimated cut for FY10 was provided to help schools consider impact on and from FY10 No school layoffs Bucket includes all funds in schools budgets plus funds for school telephones, copiers, and suspension centers where utilization is controlled by principals but the funds reside outside of school budgets.

7 Teachers $4.7 billion (57.1%) Classroom Teacher Homeroom Teacher Cluster/Quota Teacher High School Dept. Special Needs $1.3 Billion (15.8%) Leadership & Supervision $793M (9.7%) Other Personnel Costs $482M (5.9%) OTPS $389M (4.8%) Support Staff $313M (3.8%) Set Asides, Unscheduled & Other $183M (2.2%) Leadership Secretary Supervisor/Dean/Coordinator Per Diem Per Session Prof/Curriculum Develop. School Aides Family Workers SAPIS Guidance/Social Workers Paraprofessionals SBST Related Services School Support Organization $54M (0.7%) Teachers $4.7 billion (57.1%) Classroom Teacher Homeroom Teacher Cluster/Quota Teacher High School Dept. Includes Total Budget for Fiscal Year 2009 Data: Galaxy Data as of October 14, 2008 How Schools Budget

8 Where Schools Are Taking the Reduction Summary by Service Data: DBOR Surplus rollover funds from the second half of the FY08 rollover program were allocated on 11/12/08 to 838 locations, totaling $45 million. Many locations used these funds in planning their PEG reductions. $6.2 million of the funding swaps come from funds provided to schools for anticipated register growth. $2.6 million of the funding swaps comes from reimbursable (state and federal) funding sources.

9 Where Schools Are Taking The Reduction Summary Galaxy Organization Category Reduction Impact On Items Budgeted By Schools (no unscheduled funds)

10 NYC January Financial Plan Budget Reductions Department of Education is asked to propose new savings programs totaling $526.5 million in fiscal year 2010 These new reductions will be in addition to November Financial Plan reduction of $385 million FY2010