Mayor Adrian Fenty
Press release: Management consultants to begin work to improve DCPS
June 4, 2007

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Management Consultants to Begin Work to Improve DCPS

Today, Mayor Adrian M. Fenty announced with school officials the next steps in the implementation of the Mayor’s Education Reform Plan. Two consulting firms will begin work today to begin a review of the DC Public Schools’ finances and operations to identify waste and inefficiencies. The two firms are Alvarez and Marsal and McKinsey and Company. The cost for the scope of work will be covered by donations and grants from private foundations and is estimated to total $3.34 million.

Alvarez and Marsal

Alvarez and Marsal will complete a thorough review of DCPS finances and spending patterns and practices and to create a financial plan that maximizes the flow of funds into the classroom. The firm’s work includes:

• A review of all individual school budgets and overall DCPS budget
• Identifying patterns of inequity or inefficiency at a district-wide level and offering proposed solutions to the problems
• Analysis of past spending patterns and practices, tracking and accounting systems
• Analysis of Medicaid reimbursements for special education services with the goal of recapturing funds
• Creation of a financial model to support the implementation of the DCPS Master Education plan
• Submitting recommendations to restructure the budget to maximize the funds reaching the classroom.

McKinsey and Company

McKinsey and Company will provide research and analysis services that will allow the development of recommendations for improvements in the operational functions of DCPS. The firm’s work will include:

• Developing solutions and methods for tracking DCPS initiatives
• Creating teams of DCPS staff to implement initiatives to achieve goals
• Creating a Project Management Office to be run by DCPS to track DCPS initiatives and offer support to the teams implementing the initiatives
• Developing a business plan for creating a special education pilot program in DCPS
• Creating a short- and long-term roadmap for implementing DCPS goals including best-practices models