Fenty, Rhee Lay Out Plan to Close DCPS Projected Budget Gap  

WASHINGTON, DC—Today, Mayor Adrian M. Fenty and DCPS Chancellor Michelle Rhee announced the city's plan to bridge the projected budget gap facing DC Public Schools (DCPS) created by legacy spending pressures. Passage of the surplus revenue bill currently pending approval by the DC Council will alleviate $81 million of this year's projected gap.  An additional $32 million in potential savings have also been identified.

“Chancellor Rhee and her team have spent the first six months on the job looking at ways to correct historic budget pressures at DCPS,” said Mayor Fenty. “This is the first step to getting DCPS on sound financial footing to create a system that work for students and families.”

Significant savings could also be achieved once Council passes legislation that would convert current DCPS central administration employees to at-will status, allowing Chancellor Rhee to right-size the school system. DCPS will continue to explore other options to responsibly reduce administrative bloat to direct investment in teaching and learning. However, in the short term, the Chancellor's team will implement the following actions to end Fiscal Year 2008 with a balanced budget:

Identify alternative funding streams-$10.0M
The Chancellor is committed to seeking foundational resources to support ongoing transformation efforts.  Based on successes to date, significant private support is available. DCPS will look to fully maximize all federal grant dollars to support educational programs, ensuring that all grants are spent in a responsible manner in line with their intent.

Hiring freeze for non-essential personnel-$2.0M
DCPS Schools are currently staffed to support 52,000 students rather than the 50,000 students that are currently enrolled.  As school-based staff leaves during the year, which typically happens, DCPS will reassign existing staff.  In real terms, there are schools