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Arlene Ackerman, Superintendent
DC Public Schools
Testimony to the House Committee on Appropriations
Subcommittee on the District of Columbia
June 24, 1998

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Testimony SAT-9 Scores DCPS Anti-Deficiency Execution Action Plan for FY1998

DISTRICT OF COLUMBIA PUBLIC SCHOOLS
Office of the Superintendent
415 12th Street, N.W., Suite 1209
Washington, D.C. 20004-1994
202-7244222, fax: 202-727-1516
www.kl2.dc.us

Good Morning Mr. Chairman and Members of the Subcommittee. I am Arlene Ackerman, Superintendent of the District of Columbia Public Schools (DCPS). Thank you for giving me the opportunity to testify this morning to give you an update on the reform efforts underway in the District of Columbia Public Schools (DCPS) and to discuss the DCPS portion of the District's fiscal year 1999 budget.

I joined General Becton in the Washington, D.C., schools last September and became Superintendent on May 1. When I arrived, we set a clear goal for the district: we said the District of Columbia's public schools would be exemplary. We knew it would not be easy, but I have spent time in school districts that work and I know what we must do to succeed. And I've brought on senior staff who share that experience and that vision. In the ten months since I came here, we have made real, tangible progress towards that goal. I am pleased to report good news on several fronts:

We recently received our Spring 1998 scores on the Stanford 9 Achievement Test, and our students showed solid progress in both reading and math between last spring and this spring. (A copy of the test scores is attached to my written statement).

We put a singular focus on improving student achievement, with intensive reading instruction, before- and after-school tutoring and “Saturday academies,” clearly defined academic standards and special instructional materials, and targeted professional development for school staff. We told students, parents, aunts, uncles and neighbors, as well as teachers, principals, administrators, and members of the business and faith communities, that we all have a role to play in helping our students succeed.

Finally, we built accountability into the system, by establishing promotion guidelines for students and telling them they would not be promoted to the next grade without first achieving grade-appropriate skills and by revising our principal evaluation system to make student achievement fifty percent of a principal's annual performance rating.

And we got results — we made gains in every grade where students were tested in both Spring 1997 and Spring 1998. We saw fewer students scoring in the “below basic” range and more students at both “basic” and “proficient.” Clearly, we are moving in the right direction.

Now we are putting in place the necessary programs to ensure that we continue to see improvements in student achievement. Next week, we will launch the largest summer school program in this district’s history. We are planning for up to 20,000 students, some who will participate because, under the new promotion guidelines, they will not be promoted if they don't and others because they know, or their parents know, that this is a valuable opportunity to strengthen skills that are critical to success at school. Eighty of our 146 schools will be open for summer school from June 29 through August 7.

The program will be focused on the basics — two hours, of reading and two hours of math every day. Instruction will be highly structured, with scripted lessons provided to every teacher for every class period, so we can expect uniform program quality across, the district. Class sizes will be very small (1 teacher and 1 aide per 15 students for reading; 1 teacher per 15 students for math). In addition, we have included funds in our FY99 budget for professional development for teachers and administrators to support additional improvements in instruction in our schools. Finally, we've included additional staff in the FY99 staffing formula for schools that continue to show low performance.

Before I discuss the budget, I want to mention one more piece of good news. Over the years, there have been serious questions about the credibility of the school system’s enrollment count. As you may know, the General Accounting Office did a study of our enrollment process in 1997 and pointed out weaknesses in a number of areas. In response to the study, we made changes to our process last year to ensure that we could provide Congress and the Control Board with a credible number. That number — 77,111 — was audited by an independent auditor (as required by federal law) and the auditors found that our count was “fairly stated.” In fact, while their estimate was within 1% of our official enrollment, their number was actually higher than ours.

In order to address the issue that non-residents may be attending our schools, we also substantially strengthened our rules for establishing District residency this spring. A letter has been sent to all DCPS parents explaining the requirements of the new rule and an early enrollment period has been scheduled in August to give parents the opportunity to present the necessary documents to prove that their children are DC residents. Over the summer, we will work with the news media, churches, social service organizations, recreation centers, libraries and others to make sure parents know about the new rule.

Now I’m going to talk with you about DCPS FY99 budget. I recognize that you also may have questions about the FY98 deficit, but since my time is limited I would like to focus on FY99. A detailed explanation of the steps we are taking to close the FY98 deficit is attached to my statement.

The City’s consensus budget includes $545 million in local funds for the District of Columbia Public Schools. This funding level represents an increase of $85 million from last year’s congressional-approved funding level of $460 million.

The majority of the increase is required to fund either increases in the scope of services DCPS must provide or court-mandated or otherwise legally required budget increases. Special education is our largest budget driver. The budget for special education was substantially increased to cover the growing costs of private school tuition, related service payments to private schools, and transportation costs resulting from the Mills Decree and orders of the Special Master in the Petties case. In this area, we budgeted for an increase of almost $44 million over last year’s budgeted level; however, spending could be even higher if our current special education enrollment projections are borne out.

DCPS has undertaken a major effort to reform our special education program. We have entered into a comprehensive compliance agreement with the Department of Education, and we are restructuring our infrastructure to support more timely assessment and placement of students. We will also focus on expanding special education programs within the district. However, we also believe that legislative relief is needed to extend the timeframe for assessing and placing children in special education under the Mills Decree. As Chairman Cropp mentioned here last week, the City Council has endorsed our proposal to extend the timeline from 50 calendar days to 120 calendar days (to achieve parity with the surrounding jurisdictions); I am hopeful that Congress will include legislative language to this effect in this year's DC appropriations bill.

Other legally required spending increases reflected in our FY99 budget include: water and sewer charges previously paid by the City, rent increases, back pay for DCPS employees who are members of the Teamster's union, and step increases required by collective bargaining agreements. These requirements total almost $12 million.

The remaining spending increases — which total only about $17 million — are necessary to the DCPS reform effort. We intend to spend $4 million to increase DCPS’ starting salaries to $30,000 per year, so that we can compete with the surrounding jurisdictions for the best new teachers. Today, DCPS’ starting salary for teachers is near the bottom in the region. As a result, we have had severe difficulty recruiting new teacher and are placed at a competitive disadvantage in reaching the most talented candidates. As a large number of our teachers reach retirement age in the next several years, we expect this problem to become more serious if we do not takes steps now to address it. We also intend to invest $3 million in professional development. As we increase the demands we are making on our employees, we must provide them with adequate training to meet these goals.

We have included $8 million for next year’s Summer STARS program in our FY99 budget, because we know that there are no “quick fixes” in education and that many of our students will need intensive instruction during the summer months for several years to reach the performance levels we have set for them. In fact, I would like to establish a number of year-round schools in our community in the not-too distant future. I have personal experience with year-round schools and am a firm believer in their merit. Finally, we are investing an additional $2.5 million in textbooks in FY99, to address the chronic problem of outdated texts in our classrooms.

In order to put DCPS’ budget in perspective, I asked our budget office to break down the system’s spending in the following functional areas: instruction, instructional support, non- instructional support, building administration, and central administration, and to look at the shift in spending in these areas between FY98 and FY99. I also asked them to compare our budget to the Seattle Public Schools budget. The analysis showed that DCPS’ spending on instruction will increase, while the percentage of funds used for central administration will decrease (from 4.2% to 3.3%), between FY98 and FY99. It also showed that we will spend a greater portion of our budget on instruction than they did in Seattle, and a substantially smaller amount (about half as much) on central administration.

I know there is a strong belief that DCPS has a bloated central bureaucracy. I want you to know that the reduction-in-force implemented in May reduced central administration by about 25%. To dose the budget deficit, we also have released about 400 school custodians and other non-classroom based school personnel, and we expect to eliminate an additional 200 positions over the summer. In my view, while DCPS’ central office may once have been overstaffed, that is no longer the case.

In summary, Mr. Chairman, we have a clear vision and mission for the District of Columbia Public Schools and we are making steady progress toward toward that goal. We know it won’t happen overnight, but, by instituting clear standards for performance and implementing accountability systems for both school system employees and students, we have begun moving toward results. We have a long road ahead but I firmly believe that, one step at a time, school by school, and classroom by classroom, we will reach our targets.

Mr. Chairman, that concludes my prepared statement. I am happy to respond to questions.

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SAT-9 Scores

District of Columbia Public Schools
Preliminary Districtwide SAT-9 Reading Results – Normal Curve Equivalent (NCE) Means
Spring 1997 to Spring 1998
  District of Columbia Public Schools
Preliminary Districtwide SAT-9 Mathematics Results – Normal Curve Equivalent (NCE) Means
Spring 1997 to Spring 1998
Grade National Norms Spring 97 Mean NCE Spring 98 Mean NCE Change   Grade National Norms Spring 97 Mean NCE Spring 98 Mean NCE Change
1 50 49.2 52.6 3.4   1 50 I 51.4 N/A
2 50 42.1 46.2 4.1   2 50 * 45.4 N/A
3 50 41.9 44.9 3   3 50 44.6 48.0 3.4
4 50 38.8 45.0 6.2   4 50 * 44.1 N/A
5 50 41.8 46.1 4.3   5 50 * 45.1 N/A
6 50 45.5 49.6 4.1   6 50 46.8 51.5 4.7
7 50 * 43.0 N/A   7 50 * 43.6 N/A
8 50 41.89 46.9 5.1   8 50 40.5 44.8 4.3
9 50 * 39.7 N/A   9 50 * 46.9 N/A
10 50 37.3 38.2 0.9   10 50 34.8 40.5 5.7
11 50 41.8 43.2 1.4   11 50 * 45.6 N/A

District of Columbia Public Schools
Preliminary Districtwide SAT-9 Reading Performance Standards
Percent of Students Performing Within the Proficiency Levels
Spring 1997 to Spring 1998

GRADE Below Basic Basic Proficient Advanced
  1997 1998 National 1997 1998 National 1997 1998 National 1997 1998 National
1 14 12 12 47 41 47 28 33 29 11 14 12
2 40 29 25 40 46 40 16 20 29 4 5 6
3 38 33 25 34 35 33 22 23 31 7 9 11
4 42 31 24 38 40 33 15 20 31 5 9 11
5 32 25 22 49 50 43 17 20 29 3 5 5
6 27 16 21 48 55 45 21 25 29 5 4 5
7 * 29   * 48   * 19   * 3  
8 30 20 22 48 51 36 19 27 35 3 3 7
9 * 38   * 48   * 11   * 3  
10 51 47 26 33 37 40 13 13 29 3 2 5
11 50 46 36 36 40 40 12 12 20 2 2 4

District of Columbia Public Schools
Preliminary Districtwide SAT-9 Mathematics Performance Standards
Percent of Students Performing Within the Proficiency Levels
Spring 1997 to Spring 1998

GRADE Below Basic Basic Proficient Advanced
  1997 1998 National 1997 1998 National 1997 1998 National 1997 1998 National
1 * 13   * 42   * 32   * 13  
2 * 32   * 39   * 23   * 6  
3 35 31 11 40 40 48 20 23 34 5 7 7
4 * 40   * 36   * 19   * 6  
5 * 49   * 33   * 14   * 4  
6 52 40 43 32 38 33 13 17 19 4 5 5
7 * 64   * 26   * 8   * 2  
8 71 59 42 20 30 35 7 10 20 2 2 3
9 * 61   * 29   * 9   * 2  
10 89 83 61 8 12 28 2 3 10 1 1 1
11 * 76   * 12   * 10   * 2  

*Grades that were not tested in Spring 1997
Source: Department of Educational Accountability, Research and Evaluation branch, June 1998

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District of Columbia Public Schools
Anti-Deficiency Execution Action Plan for
Fiscal Year 1998
June 1998

Office of the Chief Financial Officer

Action #1
Request additional funding from the Control Board to limit the programmatic reductions.
Potential Savings (in millions)
$34.6
Steps Taken
Additional funding request made and approved by the Control Board. DCPS received $34.6 million in management reform dollars.
Additional Steps Needed
None.

Action #2
Freeze local OTPS dollars with the exception of local OTPS funds to schools, contracts in progress, special education & legal fees, textbooks, and emergency supplies approved by both the Superintendent and the CFO.
Potential Savings (in millions)
$12.3
Steps Taken
DCPS accountable officers received a memorandum on April 20th notifying them of the OTPS freeze. As a result, the RAPS system, which is used to requisition goods and services, was deactivated.
Additional Steps Needed
Based on controls established, DCPS is confident that these savings will be accomplished.

Action #3
Analyze the operating budget for expenditures that may be classified as capital and can be funded from capital funds.
Potential Savings (in millions)
$10.0
Steps Taken
DCPS has identified approximately $2 million in OTPS operating costs that appear to be capital related.
Additional Steps Needed
DCPS’ Facilities Office will provide the DCPS’ CFO with details so that the necessary journal entries can be made. DCPS will examine all capital PS expenditures to ensure that capital employees are paid from capital dollars and not operating dollars. Adjustments will be made as necessary.
Action #4
Renegotiate the Teamster’s Agreement
Potential Savings (in millions)
Undetermined
Steps Taken
DCPS has met with the Teamster union officials and is optimistic that the remaining settlement cost will be reduced.
Additional Steps Needed
DCPS will meet with the union this week to finalize the revised cost.
Action #5
Deobligate funds for which goods or services were never provided or are no longer needed.
Potential Savings (in millions)
$4.0
Steps Taken
Based on prior experience, DCPS has deobligated approximately $6 million. We believe this cost savings will materialize.
Additional Steps Needed
At the end of July, DCPS will analyze all outstanding obligations to determine which purchase orders and contracts can be deobligated. This procedure will be repeated in the months of August and September.
Action #6
RIFing non-classroom based employees.
Potential Savings (in millions)
$2.0
Steps Taken
DCPS has RIFed approximately 200 employees to date. Another 400 employees will receive their letters on June 19th. In additional, we have eliminated approximately 200 vacant positions.
Additional Steps Needed
DCPS will assess the initial impact of the RIFs and determine which vacant positions will not be filled.
Action #7
Furlough all employees who have received more than $5,000 in overtime pay during fiscal year 1998.
Potential Savings (in millions)
$2.0
Steps Taken
DCPS has identified the employees who fall into this category.
Additional Steps Needed
DCPS will calculate the number of days to be furloughed in order to recoup the funds paid in overtime.
Action #8
Furlough Group 2 (central offices) for two days per month from July through September (a total of 6 working days).
Potential Savings (in millions)
$1.8
Steps Taken
Letters to all Group 2 employees must be mailed no later than June 19th informing them that they will be furloughed 2 days per month from July through September.
Additional Steps Needed
DCPS will ensure that furlough days taken are staggered to reduce the impact on overall operations.
Action #9
Furlough Group 6 (excluding teachers) for two days per month from July through September (a total of 6 working days).
Potential Savings (in millions)
$0.7
Steps Taken
Letters to all Group 6 employees must be mailed no later than June 19th informing them that they will be furloughed 2 days per month from July through September.
Additional Steps Needed
DCPS will ensure that furlough days taken are staggered to reduce the impact on overall operations.
Action #10
Institute a general hiring freeze. New hires allowed on an exception basis with required approval from the Superintendent and the CFO.
Potential Savings (in millions)
Cost Avoidance
Steps Taken
DCPS accountable officers received a memorandum on April 20th notifying them of the HIRING freeze.
Additional Steps Needed
DCPS will continue to monitor personnel activity to ensure additional costs are avoided.
Action #11
Implement a spending freeze for object class 13 (overtime or premium pay). Exceptions can be made with approval from both the Superintendent and the CFO.
Potential Savings (in millions)
Cost avoidance
Steps Taken
DCPS employees received a memorandum on April 20th notifying them of the OVERTIME freeze.
Additional Steps Needed
DCPS will continue to monitor employee performance to ensure this cost savings is realized.

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