-----Original Message-----
 From: Philip Risken [mailto:prisken@sbcglobal.net]
 Sent:
Wednesday, February 02, 2005 3:54 PM
 To: 'Sue Berg'
Subject: RE: MDUSD Budget Web Page Review Questions.
 
Sue
Thank you for the explanation.

You also answered one of my inferred questions which was how many school properties does the MDUSD own.  In my mind you have 50 potential profit centers laying at your feet that you only need to find a way to generate income.  Easy things that come to mind are:

§         Cellular Telephone Towers (each carrier pays fairly substantial rents for space)

§         Sports Advertisers

§         Music Advertisers

§         Book Signings

§         Rental of Facilities for Public Events (ie football stadiums, concert halls)

§         Starbucks Kiosks on every High School Campus

§         Do we own any buses (more advertising signage)

§         Cellular Phone Advertisers

§         Rent the name of the school to a company much like Candlestick Park turned into 3Com Park

 I could go on with ideas like this.  Some will be nonsense and some will stick but all it takes is to figure out a way for each property to generate $80,000 annually and you will have just found yourself $4M.  The cellular telephone rent alone could generate these kinds of revenue.  Also look for ways to cross-brand.  For example, integrate the sports advertising with the sports team (and be prepared to change the name of the team) or integrate the Cellular Telephone Company who you lease space to integrate into your schools Science or Physics program.  In this way everyone wins.

 I truly believe you all at the district are trying to find your way out of the box.  I also believe you have probably squeezed most everything out of the Turnip.  It is time to take a fresh look at thinking out of the box.  Tell yourselves to move from the cutting mode (scarcity) to the building mode (abundance).  Throw the status quo out the window and look for those untapped opportunities for growth.  This will take a paradigm shift of the School Board’s thinking and culture but unless you (School Board) are willing to take these kind of bold steps (and frankly that is what Mr. McHenry is being paid to do as a leader) you will continue to writhe in pain over the issues.  Much like in the private world, there are times that you need to reinvent yourself.  It seems now may be the time for the MDUSD School Board to reinvent itself for its own sake, for its survival and for our children.

 Also, let’s pay the teacher’s what they are worth.

Philip Risken

Parent

 -----Original Message-----
From: Sue Berg [mailto:bergs@mdusd.k12.ca.us]
Sent:
Wednesday, February 02, 2005 11:37 AM
To: 'Philip Risken'
Subject: RE: MDUSD Budget Web Page Review Questions.

These two are easy to answer, so I shall do so now. I still need a couple of days for your first questions.

1.       Our purchasing director, Brian Slaughter, introduced district credit cards (called “Cal Cards” here) this past year. I believe people are very happy with this system.

2.      I am sorry that the teachers’ union continues to distribute information about the superintendent’s salary that its president knew was incorrect from the get-go, but we are in negotiations, so it’s understandable.

The superintendent has received the same salary raises, and only the same raises, as other District employees since he came to Mt. Diablo in late 1999. The last one was 2.5% in 2001. During the last school year he did receive a longevity stipend because he’d completed four years of service in the District. The stipend was 2% a year for each full year served, payable at the end of every four years. If he leaves before completing the full four years, he receives no stipend for any of them. All employee contracts include a longevity stipend. Two years ago the superintendent had the allowances he’s given for transportation, life insurance, and membership in two specific professional organizations placed on his salary, in the same way that teachers had their medical benefits placed on their salary a few years ago. Like the teachers, Mr. McHenry now pays directly for services that the District used to pay for him. Thus, it looks as if he makes much more than when he started, but it’s all really just more visible. His salary is $173,000, which is actually on the low side for the leader of a district with 37,000 students, 50+ schools, and 4,000 full- and part-time employees. I want to add that unlike teachers and other employees, the superintendent’s compensation is not laid out on a salary schedule that assures automatic increases from year to year for the first 5 to 13 years of service (depending on the unit) regardless of whether a raise in salary goes into effect. His compensation is truly performance-based, dependent on his annual evaluation by the Board of Education.

If I sound defensive, I am. I know Gary McHenry to be a dedicated, hard-working (as in 60 hours/week) man of high integrity who really is trying to make sure this district serves all students and who believes employees, especially teachers, deserve the salary increases they are requesting. It’s just a matter of finding the money without sacrificing valuable jobs and programs. No easy task.

 

Susan Berg
Sr. Adm. Asst. to the Supt./Communications Specialist

Mt. Diablo Unified School District
1936
Carlotta Drive
Concord, CA 94519

(925)
682-8000, x4010   Fax: (925) 689-1649


From: Philip Risken [mailto:prisken@sbcglobal.net]
Sent:
Tuesday, February 01, 2005 8:17 PM
To: 'Sue Berg'
Subject: RE: MDUSD Budget Web Page Review Questions.

No problem at all.  Thanks for taking a look into this.

Another idea that I had to raise money was to have the school district make all purchases on Pcards (District Credit Cards) that would provide a direct 1 – 3 % rebate at the end of each year on the total volume of purchases.  The company I work for as well as others have found this to be extremely beneficial and lucrative not to mention the reduction in the need to produce Purchase Orders that are typically very costly to administer.

 As I think of more cost saving or revenue generating ideas, who should I send them along to?

I also saw a flier from the Teacher’s Union today saying that Mr. McHenry was granted a 16.7% pay increase last year and is now making $180k per year.  Is this data correct?

Phil Risken

 

-----Original Message-----
From: Sue Berg [mailto:bergs@mdusd.k12.ca.us]
Sent:
Tuesday, February 01, 2005 4:33 PM
To: 'Philip Risken'
Subject: RE: MDUSD Budget Web Page Review Questions.

 I hope you appreciate that I cannot answer your questions today as I must prepare for tonight’s public hearing. I shall try to respond by end of week.

 Susan Berg
Sr. Adm. Asst. to the Supt./Communications Specialist
Mt. Diablo Unified School District
1936 Carlotta Drive
Concord, CA 94519

(925) 682-8000, x4010   Fax: (925) 689-1649


From: Philip Risken [mailto:prisken@sbcglobal.net]
Sent:
Tuesday, February 01, 2005 3:48 PM
To: 'Sue Berg';

Subject: MDUSD Budget Web Page Review Questions.

 Sue 

Thanks for your response.

 I had a chance to review the web site regarding the budget and actually came away with more questions than it answered.  I was wondering if you could answer the following:

 % of total cost over time for teacher salaries, health and welfare?

 A comparison of current teacher salaries % with the most successful School Districts in the state that are not having to close down programs?

 % of total cost over time for School Board members salaries, health and welfare?

 A comparison of current School Board member salaries % with the most successful School Districts in the state that are not having to close down programs? 

The quantity of properties that MDUSD owns in Contra Costa County?

 The % of those properties generating revenue (positive cash flow)?

 A comparison of our School Districts % of properties generating revenue with the most successful School Districts in the state that are not having to close down programs? 

What percentage of our MDUSD property (square footage of buildings) is associated with supporting our school board?

 A comparison of our School Districts % of properties supporting the school board with the most successful School Districts in the state that are not having to close down programs?

 What are the priorities (legally and meeting the Districts vision) for each of the programs the MDUSD controls (ie is Adult Education more important than Middle School Math)? 

This is just the beginning of a long series of questions that would lead you to “Best Practices” by comparing what MDUSD is doing and what another World Class School District is doing.

 You may wonder about my revenue generation questions.  These are purely to open up our school properties to those commercial endeavors that are willing to pay good money to have access to our students (ie food vendors etc), our properties (ie Cellular Telephone Companies etc), our hallways (ie advertisers of products that would be targeted to our youth) or any number of other untapped revenue streams.

 Have you thought about streamlining the bureaucracy within the School Board (ie cutting out layers of management, streamline processes that drive efficiencies within the workforce, look for ways to outsource repetitive tasks).

 Have you thought about having the School Board take the first major headcount reduction and the first major Salary Reduction? 

Are there physical properties we can sell that are now obsolete that could generate one time revenue? 

Have you considered a Luxury Tax for locals targeted to the school district to generate local revenues (you would first want to “cut the bureaucracy”, reduce district staff and reduce district salaries significantly) 

My most fundamental thought on this issue is that those things that touch our children (teachers, school programs, facilities) should be our most sacred treasures and should be protected at all costs.  EVERYTHING ELSE IS SECONDARY! 

At times like these “desperate times require desperate measures”!

I look forward to your response in answering my questions.  Thank you.

Philip Risken

Parent of a MDUSD Musician

-----Original Message-----
From: Sue Berg [mailto:bergs@mdusd.k12.ca.us]
Sent:
Tuesday, February 01, 2005 12:34 PM
 Subject: Responding to your e-mail

 February 1
Thank you for your note to Superintendent McHenry regarding budget cuts. The Board of Education is holding a public hearing tonight, February 1, at Clayton Valley High beginning at
7 p.m. At tonight’s meeting the superintendent is recommending the following items for Board consideration:

Item #

Description

Savings

43

Eliminate classes with enrollment less than 20 students.

$535,000
(10
FTE at $53,000 ea.)

66

Reduce 1.2 high school librarian positions.

$88,843

67

Reduce 3.33 middle school librarian positions.

$246,539

69

Eliminate 0.5 Senior Secretary position in Curriculum Dept. (Willow Creek Center)

$25,208

70

Transfer excess funds from routine restricted maintenance account.

$50,000

72

Reduce operating budget of Curriculum and Instruction by $54,139.

$54,139

74

Charge 3% of Research and Evaluation Director salary to Emergency Prep. grant in 04-05 and 05-06.

$15,000/yr.

If the Board approves these items, we will be within $700,000 of our $4 million goal. However, that goal may be too conservative. We welcome suggestions for other budget reductions than what’s on the list and for ideas for new revenues.

This is the third year in a row that the Board of Education has had to make cuts in the District budget. To date, the cuts have totaled $10 million and not touched programs important to students. Mt. Diablo is not unique. Districts throughout the state are dealing with the same issues--declining enrollment (on which funding is based) and years of little or no increases in state revenue. Most are making budget cuts even more severe than ours. Those that are not typically have revenue from at least one community-funded parcel tax to support programs such as instrumental elementary music.

 

In addition to coping with insufficient revenue, we also face--as you do--increased costs for basic services, such as gas and electricity, for health care premiums, and workers' compensation insurance. Employees have not received raise in nearly three years, and all our bargaining units are in the process of negotiating new 3-year agreements.

 

Not a single Board member wants to cut the programs you mention. Neither does Superintendent McHenry. But we have few options left. If you look on the Budget Reduction List (available on the District web site: www.mdusd.k12.ca.us), you will see the District leadership is working slowly and carefully on this process. The Board simply has to look at each expense in the context of all District programs and services during this time of fiscal hardship.

 

For Gary McHenry, I am

Susan Berg
Sr. Adm. Asst. to the Supt./Communications Specialist

Mt. Diablo Unified School District
1936
Carlotta Drive
Concord, CA 94519

(925)
682-8000, x4010   Fax: (925) 689-1649

 

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