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Sunday, March 22, 2009

Letter from Chancellor Klein Regarding School Budgets

Dear Colleagues,

Yesterday, the Mayor announced how the Department of Education and other City agencies will cut back this year and next year to cope with the economic crisis we are facing. In this note, I will outline for you the steps we are taking in the weeks and months ahead and what that will mean to those of you who educate our children.

At the outset, I want to emphasize that our priority from the beginning of our work together has been putting children first, helping them learn and make academic progress. These are tough times, but our goal does not change in tough times. It guides us. Our aim now, and throughout this process, will be to preserve the fundamentals in our schools and help our students continue to make progress.

Last year, we went through two rounds of budget cuts as our economy faltered. In both, we worked to cut as little as possible from schools and classrooms. These cuts have not been easy for any of us, and I thank you for your hard work through tough times and your continued focus on helping our students succeed. All of the people in our school system—and especially those of you who spend your days in classrooms—have played an important role in improving education in New York City. You should be proud of this work.

Today, the City faces a financial situation that requires a detailed look at every dollar in our $21 billion budget. When the Mayor first announced citywide reductions of 2.5% ($180 million) in 2009 and 5% ($385 million) in 2010, we embarked on a thorough analysis of the DOE’s spending. I believe we have been spending our money wisely and effectively, but given the economic realities, we have no choice but to make hard decisions and look for areas where we can reduce. As we undertake this effort, it’s essential that the cuts be done in a way that allows schools and students to maintain and build on recent progress.

Guided by these principles, we have decided to take the following steps:

  • The first area where we’re cutting back is in our own backyard, at Tweed Courthouse and in the other offices outside of our schools. In order to minimize the reductions to our schools, we will cut into Central and field significantly, reducing our budget by 6.5% this year.
  • We will eliminate approximately 475 positions outside of our schools. This represents a reduction of about 8%. Unfortunately, this will mean terminating several hundred staff and not filling about 100 current vacancies. Part of our ongoing work will be to identify how the DOE can best maintain and improve its effectiveness while absorbing the loss of these positions.
  • We have recently embarked on an analysis of the central and field structures and operations. While working to improve the efficiency and effectiveness of the central and field departments, we will look to consolidate areas of overlap, to eliminate programs that are not essential and to fill the gaps in processes between functions in various departments.
  • While we’re looking for all the savings we can outside of school budgets, this effort will not provide a complete solution. Just look at where the money is: we have a total budget of $21 billion. Of that, $13 billion is at the schools. Of the $8 billion balance, most of the funds are spent on school support services like school food, busing, and debt service. Only $400 million supports central expenses like family engagement, teaching and learning, financial operations, human resources, legal, and technology. Only about $200 million supports field expenses like the integrated service centers and the school support organizations.
  • The deep reduction to our non-school budgets will enable us to limit cuts to school budgets to a relatively small 1.3%.
  • While no one would suggest that this reduction will be easy, we believe it will help us to spare schools any significant mid-year layoffs.
  • At the same time, it is important to remember that reducing costs in non-school budgets does have an effect on the level of support that schools receive—and some of those costs affect schools directly.

For 2010, we will have to cut more deeply at the school level, but we will continue to cut more deeply from non-school budgets than from schools. Our current plan is to reduce non-school budgets by 8.6% in the fiscal year 2010 and to reduce school budgets by 3.5%.

Some of the areas where we will find savings—in addition to savings we will realize by reducing positions—include reducing publication costs, lowering grading costs, reducing assessment costs, spending less on facilities maintenance and repairs, and reducing teacher - recruitment expenditures. We will also take additional steps, which we will work with the school community and others to determine and implement.

The financial outlook remains uncertain for the City. As we implement these cuts, and as we plan for contingencies, we will continue to work with central offices, the schools, and others in the school community to determine the best possible course of action.

While we are facing very difficult economic times, our City has survived tough times before and, working together, we will do so again. I can’t pretend that the months ahead will be easy, but I do want to let each of you know that I believe we can make the cuts we need to make and step up—individually and as an organization—to keep our students and our schools on the right track and set an example for our students and other New Yorkers about how to behave in tough times. I know each of you will continue to show leadership and character to the students you teach every day.

I want to assure you that as we move through the weeks and months ahead, I intend to communicate with you regularly. Our employees are our most vital asset and our people deserve clear and regular updates on what's happening and how it will affect their lives and their work. If you have questions, please contact your principal. You can also contact HR Connect at 718-935-4000. For all other questions related to the budget, please e-mail DOEbudget@schools.nyc.gov.

I thank each and every one of you for your continued commitment to the public school children of New York City. They are counting on you, and so am I.

Sincerely,
Joel I. Klein

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