Mandatory $3,906.5 thousand Pay Raises for GS and WB Employees Staffing of New Facilities (Mamie D. Lee, Woodson, Langdon -CITY COUNCIL $2.1 Million INCREASES TOTAL INCREASE $7.3 Million Mr. NATCHER. Dr. Scott, we want to thank you for your statement. The committee will adjourn until 1:30. Mr. NATCHER. The committee will be in order. AFTERNOON SESSION. At this time we have Mr. Delroy Cornick, the associate superintendent, before the committee. Mr. Cornick is in charge of the Budget and Executive Management Section of the District of Columbia Public Schools. GENERAL STATEMENT OF THE ASSOCIATE SUPERINTENDENT Would you like to have your statement inserted in the record in its entirety? Mr. CORNICK. Yes. This dealt with just the economic factors affecting the budget. Mr. NATCHER. Unless there is some objection, we will insert the statement in its entirety at this point in the record. (The statement follows:) I am pleased to have the opportunity to appear before you this afternoon and to share with you our concerns regarding the economic aspects of the FY 1972 Budget. The FY 1972 Budget submitted to the House of Representatives requests an increase of $7.4 million over FY 1971, an increase of 10.5%. This increase provides for very little in new programs; it merely meets inflationary costs. In the 12th Annual Cost of Education Index published in School Management, the point is made that "until inflation cools down, school districts that fail to increase spending will face program cut backs" 1/ This is the problem which confronts the D. C. Public Schools and those in surrounding jurisdictions. Let me illustrate the point: In announcing the 1971-72 budget for Baltimore Public Schools, Superintendent Dr. Thomas D. Shelden states that $10.9 million of the $19.7 million increase requested is "necessary to sustain operations at 1969-1970 approval level." 2/ 1/ Cost of Education Index 1970-71 Schools Management (January 1971) page 10. 2/ Baltimore Sun (January 10, 1971). Section D p.11 The Superintendent of Fairfax County Public Schools announced a $15.9 million increase over the current operating budget, of which only $.5 million is "tagged for improving existing school programs." The overwhelming percentage of the increase reflects "strong inflationary pressures common throughout the country. The school system thus is having to pay more employees higher wages on seniority increases". 3/ The Montgomery County School Superintendent proposed a $163.2 million school operating budget for the 1971-72 school year. 4/ This represents an increase of $21.2 million or 14.9 percent. Over half of this increase is for "cost-of-living increases" and other salary and benefit items. Further, the 9.6 percent increase in per pupil expenditure proposed in this budget for D. C. Public Schools is in line with the national experience according to the National Education Association. 5/ There is no question that inflation is an important factor in assessing school financing needs. The Cost-of-Education Index referred to earlier indicates that the 1970-71 education dollar may "well be worth only about 53¢ taking 1957-59 as the 100¢ dollar." The report further states that the increase of 13% in last years' education expenditures was almost entirely offset by nearly a 11% rise in education inflation. 3/ Washington Post (January 9, 1971). p. B1. 4/ Montgomery Schools Ask $163 Million Washington Post (February 10, 1971) Pp. C1, C22. 5/ducation Daily, Volume 4, No. 7 (January 12, 1971) p. 2 These trends present a background against which to view the requests for the D.C. Public Schools. Personnel costs and non personnel costs provide points of reference for discussing what is happening to school costs. Personnel Costs: Eighty-eight cents of each dollar is consumed in providing human resources for the schools. Seventy (70%) percent of both dollars spent and numbers of personnel provided is for Class 15 instructional staff - teachers, counselors, and librarians who work directly with our children. The estimated cost of providing each of these persons in the FY 1972 Budget is $12,000 computed on the basis of $10,660 salary plus 10% benefits and $300 for substitute time in the case of classroom teachers. In many respects the school system is penalized for its improvements. As fewer temporary teachers enter the system, as more teachers acquire additional hours beyond the bachelor's level, as turnover is reduced and tenure achieved and as more attractive salary scales are adopted, the pressures on schools budget mount. 6/ Another problem which affects the school costs is the budgetary process itself. The steps used for computing salaries has been unrealistic in previous budget submissions, within-grade increases have not been budgeted; and in the past two years, the District of Columbia agencies have been required to absorb 15% of all legislated salary 6/ Nationwide, the increase in salaries of teachers and other instructional staff rose 7.1 percent over last year, but again according to NEA this barely offsets the rise in the consumer price index. The average salary of classroom teachers is estimated at $9,265 based upon nearly 2.0 million public school classroom teachers. The average salary does not include benefits, leave, and substitute time. (Ibid. 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