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Chancellor Michelle Rhee 
Testimony on the DCPS Reduction in Force
October 29, 2009

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Testimony of Michelle Rhee, Chancellor
Meeting of the Council of the District of Columbia

October 29, 2009

DCPS Reduction in Force

Good morning, Chairman Gray and honorable members of the DC Council. Thank you for giving me the chance to testify today regarding the reduction in force of October 2, 2009. School districts across the country are challenged to balance their budgets in the current economy without reducing services. When staff reductions occur as a result, emotions are bound to run high.

Washington, DC has seen its share of economic pressure. As the Chair stated after balancing the city budget, Council had a tough decision and “put all options for filling the budget gap on the table: cutting spending; reducing staff and their benefits; raising taxes, fees and other revenue enhancements; as well as using the fund balance.”1

We find ourselves in an unfortunate situation today due to both natural tensions after a staff reduction, as well as some misconceptions I would like to clear up today. I understand that some council members feel that we intended to place blame for the reduction in force at your doorstep. This was never our intention. While we have been open about where the cuts came from as a matter of fact, we have acknowledged from the beginning of this process that Council faced tough decisions and was put in a difficult position to balance the city budget. We understand this completely and have reiterated this belief through multiple news venues and individual conversations and meetings. We aimed only to implement, to the best of our ability, the resulting reduction that came from the decision to cut the DCPS budget.

Of course, we needed to implement the Council’s cuts without sacrificing important programs such as summer school, and I take full responsibility for my management decisions to do so. I continue to believe it was the best response to a very difficult situation.

Today I would like to walk through how we came to our decisions and the process through which we implemented them. We can also address the misperceptions that have come up along the way.

With much hard work ahead of us, we are still far from being able to say that all students are getting the education they deserve. Rather than becoming mired in rumors and misunderstandings, I hope that today will allow us to move forward on the work we have pledged to do for students and families in Washington, DC.

I would like to begin by reviewing the timeline of the past few months as we understand it.

Timeline (Slides 2 -7) [See PowerPoint presentation at http://www.dcpswatch.com/rif/091029b.pdf]
Accommodation of the Reduction

When we learned of the shortfall, DCPS, together with the Office of the Chief Financial Officer (OCFO), determined options for absorbing the cut. We first determined to absorb the cut through central office reductions, and second through school reductions.

Because the yearly equalization process is disruptive as teachers are moved across the system after the school year begins, we did not want to disrupt the affected schools twice. In order to minimize the impact on students, DCPS decided to adjust school level budgets simultaneously with implementing the annual equalization process.

  • Responding to the Reality (Slide 9)
  • Schools Received Revised Budget Allocations (Slide 10)
  • Principals Were Guided to Meet New Budget Allocations (Slide 11)
  • Principals in Affected Schools Were Guided to Implement the RIF (Slide 12)
  • The CLDF Process (Slide 13) • Categories Used to Rate Staff (Slide 14)
  • Staff Contributions to Needs of School (Slide 15)
  • Timeline Snapshot of RIF Process (Slide 16)

Clearing Up Misunderstandings

• The RIF did not Target Veteran Teachers (Slide 18)

Some have claimed that DCPS targeted veteran teachers in the reduction in force. Nothing could be further from the truth. Principals were specifically advised, in writing, of the factors they could not consider in rating staff members (age and union status were clearly off the table for consideration). We repeatedly made it clear to principals that all staff members entered the process on equal footing. In addition, Human Resources staff reviewed all ratings to ensure that inappropriate factors were not considered. Finally, school reduction plans were also based upon average salaries—as opposed to actual salaries—to ensure that schools had no incentive to target veteran teachers (who have higher salaries).

The process of identifying positions occurred separately from the assessment of staff according to school needs. If all other factors were equal and it was still not clear which staff member would be separated, creditable service (weighted 5%) was then used to make the final decision. This gave an advantage to teachers with more years of creditable service.

Data illustrates that the process did not target any particular teacher group.

• School Disruptions (Slide 19)

Because of the inevitable loss of jobs that would come with a budget cut, we understood in August that the process would be disruptive. While disruptions did occur in some schools, the vast majority of schools were not significantly affected.

In fact, sixty percent (60%) of schools lost either one staff member or no staff member. Eighty percent (80%) of schools lost two or few staff members.

• Police Officers in Schools (Slide 20)

Many were upset to see police officers in schools on the day of the RIF. I would like to be very clear that this was an unfortunate coincidence. As you know, the night before the reduction in force occurred, Hawk 1, the firm providing security to DCPS, went out of business. To ensure the daily safety measures remained in place for students and staff, the Metropolitan Police Department stepped in to provide the same level of school security that would occur on any school day. Had there been no reduction in force that day, MPD still would have been in schools. Had Hawk 1 remained in business, there would have been no officers in schools.

Officers, filling in for school security only, may have been aware of the RIF in some schools that lost multiple positions. They would not have been standing in doorways or escorting teachers out. Officers were not instructed to escort separated teachers from their schools. In all, we were alerted to five situations, three in which we found that MPD had responded to related security needs (two at McKinley and one at Roosevelt).

• Disruptions at McKinley

As you know, the process did not go smoothly at McKinley. The implementation at that school was not what we intended. To the extent that people felt devalued or upset regarding the process at McKinley, we acknowledge and regret the hurt feelings that have occurred.

• Private dollars could not have prevented the reduction in force (Slides 21 -22)

On October 15th, the Post published a piece claiming that private donors would have been able to cover the staffing costs left by the $12M DCPS cut. The story was not correct, and those familiar with fundraising reiterate that funders prefer funding innovation, not the operating staffing budget of an organization.

After receiving a number of emails from the FCC and others, the Post printed a retraction citing the error. Business leaders have contacted me directly to show their support and to reiterate that they could not imagine a scenario in which private funders would fill such a budget gap.

It is important to note that businesses and private interests in Washington, DC have been extremely generous in their offer of support to the students of this city, and the gains we have seen over the past two years belong to them as well.

However, in the past, this generosity has not been maximized to produce the results that citizens and businesses have wanted to see for decades. In the system I inherited, there was little strategic implementation of hundreds of privately supported programs in schools, and much hard work was directed across the system without being consistently aligned to district goals or measured for its results. There was little infrastructure or discipline around ensuring that the truly heroic efforts of the business community were actually bearing fruit in student achievement.

Part of my job in reforming the system has been to bring good management practice to the process of soliciting and accepting donations, whether of in-kind services or dollars. While this approach may be different than in the past, it is a far more effective way to ensure that the enormous good will from the business community is harnessed into results.

• Use of Stimulus Funds to Stem Job Loss (Slide 23)

Many have asked why we could not have used stimulus funds to avoid removing staff. Fortunately, stimulus funds did allow us to preserve as many jobs as possible through state stabilization funds, thanks to the president’s American Recovery and Reinvestment Act (ARRA). $39.3M state stabilization dollars are funding educator salaries in 2010. However, Title I stimulus funds, as well as those granted under the Individuals with Disabilities Act (IDEA), must follow the same federal guidelines that govern spending of federal funds, including spending requirements and restrictions in Title I districts. We are the only district in the country in high risk status with the Department of Education due to the management of federal funds, and we are not in a position to disregard the very clear expectations they have set for us on this topic.

Also, stimulus funds ultimately were counterbalanced in light of the overall budget. Once the stimulus award was announced, other portions of the budget were reduced in light of the funds coming in. While we did stem the flow of job loss through some stimulus funds, for the most part even with the stimulus, the Council’s adjustment still necessitated the RIF.

Moving Forward Through Tough Decisions

DCPS is showing more dramatic gains than in the past when compared with students across the country, and now is the time to stay the course. We have faced hard decisions before. From the process of creating and implementing a new discipline policy, to identifying new leadership and partners for restructuring schools, our response to this summer’s unexpected cut is just one of the challenges that requires hard decisions in response to the realities we face.

In that vein, when we have a budget problem now, the best response is to solve it now. Council has acted under this premise by making the hard decision to cut the city budget rather than using reserve funds. Similarly, it would not have been responsible for us to operate in the hopes that summer school money would simply appear, and I had to make the difficult choice to lay off staff to balance our budget and move forward through 2010 responsibly.

With less than 50% of our students proficient in basic skills, and the vast majority unable to complete college within five years, we must continue to move forward in the shared mission to produce dramatically different outcomes for the children of DCPS.

Despite the tensions that have gone back and forth over the past few months, as adults in the system we need to move forward to create the positive and productive environment for children that our constituents expect. I am hopeful that we can renew this shared focus and effort today.

Thank you, and I welcome your questions.

1 Washington Times, August 5, 2009

District of Columbia Public Schools | October 29, 2009

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