Message from the superintendent on the adopted budget
Dear Friend,
During a public meeting on June 21, the NEISD Board of Trustees approved the 2010-2011 district budget composed of the general, debt service and school nutrition services funds. Next year's budget reflects $504,024,000 in revenue and $494,830,000 in expenditures. I am glad to report that we exceeded our spending reduction goal and expect to add more than $9 million to our fund balance in 2009-2010 and $9.2 million in 2010-2011. This should create two months of reserves for operating expenditures. A healthy fund balance is important for several reasons. It allows the district to operate during the first 10 weeks of the fiscal year when income is low and provides for emergency spending. It also improves the district's bond rating, which helps keep the debt service tax rate low.
The district successfully met its reduction goal for 2010-2011 by taking several steps. Unfortunately, with 87 percent of the district's budget in personnel, budget cuts inevitably affected people. The decision to reduce staff across the district was a difficult one -- one of the hardest I have had to face in my 20 years as superintendent. During the Reduction in Force (RIF), we initially identified more than 50 teachers to be released from their contracts next year, and all but three have found other jobs in the district. Human Resources worked diligently with these individuals, but the employees’ certifications did not match available positions in the district.
One of the main factors in the RIF was the elimination of the high school A/B block schedule. The district held on to this schedule long after many other districts had discarded it.We saw how districts successfully transitioned back to a 7-period day, and we knew it was a move we had to make to help sustain our financial stability.
Our philosophy has always been that campuses will not carry the sole burden of budget cuts -- top administration will share it as well. As I mentioned in my June 4 update, I did not refill an associate superintendent position that became vacant from a retirement. This is just one example of the reductions being made at Central Office.
On July 12, the board approved a compensation plan for teachers and librarians, which included a state mandated step increase. The starting salary for teachers and librarians will be $46,440 with an additional step increase for continuing teachers and librarians. New-to-district teachers with 25 or more years of experience will be placed at step 25 on the proposed salary schedule, which is $58,540. Employee health and dental plans and premiums remain unchanged at this time. All other salary schedules were sustained with no increase. Employees will still receive the retention supplement incentive with a slight reduction. Eligible employees will receive a supplement of two percent of their salary schedule midpoint up to a maximum of $1,000. Executive Staff, executive directors, temporary and substitute employees, along with those employed for less than 20 hours per week are ineligible for the supplement. Our combination of salary and retention supplement still keeps NEISD among the highest starting teacher salaries in our area.
Additionally, the school nutrition services fund budget was approved. Under this fund, the district will maintain cafeteria tray prices at the same rate as 2002. Our proposed tax rate for the upcoming year will also remain unchanged, and we will take this to the board on Aug. 9 for approval. For more details, I encourage you to view the entire budget presentation at http://www.neisd.net/fina/NEISD_Budget_Info.html.
Please note, our belt tightening will continue in 2011-2012 and 2012-2013, with our ultimate goal being a cumulative savings of $63 million. Based on the district's recent efforts, I am confident that we will be successful in meeting our goals. This hard work will help secure our financial future as the state faces an estimated $15-18 billion deficit in the 2011 legislative session.
Thank you, and have a great week.
Sincerely,
Richard A. Middleton
Posted on July 2010