ACTION ITEM Staffing/ Programs 2018

1. Superintendents Recommendation:

The States budgetary structural deficiency has resulted in anticipated reductions in funding
for the District. The district is projected to receive reduced support for general operating
expenses (~$ 2 Million). The district further anticipates reduced support in funding for the
Educational Sustainment and student transportation. (~$ 4 Million). To meet the six-
million-dollar reduction, the District has proposed decreases in spending and decreases in
educational services provided students. Seventy-Seven (77) academic positions will be
impacted. Some of this reduction will be met with retirements, non-renewals, or the
reductions proposed by the list provided. (Attached)

Action is required on these positions tonight in order to comply with notification

requirements established in Delaware Code. The district is required to notify teachers by
May 15th of any potential reductions.

2. Background/Analysis:

Governor Carney has proposed a Budget Reset, which represents significant differences
from the budget submitted by Governor Markell. Currently, the only bill presented to
legislators is HB 25 (which represents the budget presented by Governor Markell). We
anticipate Legislators will be actively reviewing revenue generation and expense reduction
proposals requested by Governor Carney. However, the operating budget for the state will
not likely be finalized until June 30.

On April 18th, the CSD Board of Education held a workshop followed by a regular Board
Meeting. The workshop reviewed the impact of the proposed State reductions, revenue
shifts, and the impact on the District. The Board action item was on Revenue Shifting; with
the District seeking direction from the Board on their intent to levy a new Match Tax in July
(subject to the establishment of authorization through legislative action). The District
recommended the approval of the increased taxes to minimize the impact of decreases in
education services. The Board Action Tabled the motion.

The Board directed the district to provide options to address the anticipated $ 6 Million
reductions in State funding. The District provided the requested information during the CSD
workshop on April 26. The Board held a meeting on May 4 to review programs funded with
units earned at the District level, along with proposed amounts of budget reductions. The

BOARD OF EDUCATION
 Board decision not to eliminate programs has led to the necessity of decreasing education
services through increasing class sizes.

Timing of the approval of the State Operating Budget will not occur prior to June 30. We
will likely not know if the budget will include authorization for the School Board to raise
taxes without a referendum (through a Match Tax), it is also not known if the Board will
exercise this authority. The Board would consider exercising this authority, in July, when it
approves the tax warrant for the next fiscal year.

Staffing decisions, unfortunately cannot wait unit all of these decisions have been finalized.
The District must assume that the State will not provide $6 Million, and, that the Board will
not raise taxes.

Action for this evening is the reduction in force (attached list)

3. Fiscal Impact:

4. Prepared By: Robert A. Silber, Assistant Superintendent and CFO

5. Board Meeting Date: May 10, 2017

BOARD OF EDUCATION