EXECUTIVE LIMITATION 1.4

–

COMPENSATION/BENEFITS/EMPLOYMENT

TO: Board of Education

From: Superintendent

–

DCSD

I hereby present my monitoring report on our Compensation, Benefits and Employment

Executive Limitation 1.4 in accordance with the monitori

ng schedule. I certify the

information in this report is true.

Signed: _________________________________ Date: January 16, 2009

EL 1.4 Compensation/Benefits/ Employment

With respect to employment and benefits for employees, consultants and contract

workers, the Superintendent shall not cause or allow jeopardy to the fiscal integrity or

public image of the District.

Interpretations:

“…consultants and contract workers…” are suppliers who provide specialized services

that were previously defined in EL

1.6 on December 16, 2008. These individuals are on

contracts which are temporary in nature with a start and an end date agreement.

“…cause or allow jeopardy to the fiscal integrity or public image of the District” is to

ensure all District

funded personn

el costs will not create an expense that produces an

unfunded obligation for the district in being able to meet our payroll and service

payables. The District also, conducts background and reference checks and completes

CDE licensure verifications as appr

opriate in order to not impact negatively the district’s

public image by employing unqualified personnel.

Data Reported for Compensation:

REPORT

PROGRAM

Budget 07

08 $

Actuals 07

08 $

Variance $

Severance

1,912,121

2,022,321

(110,200)

Salaries

259,56

0,512

260,198,960

(638,448)

Extra Resp. Pay

2,139,147

2,116,675

22,472

Substitute Program

4,628,160

4,211,084

417,076

Purchased

3,707,481

3,735,517

(28,036)

Professional &

Tech. Services

TOTAL:

271,947,421

272,284,556

(337,135)

Note: Data provided

by Budget Department

a =

Severance Budget was based on trending from the previous year’s actuals. We had

more employees to separate from the district than planned along with some payouts

for SY 2007

08 being carried over into SY 2008

Overrun was due to: Class Coverage overruns, Writing of Curriculum extra duties,

coding to Extra Responsibility Pay versus charging to Salaries and Overtime usage..

= Purchased Professional and Technic

al Services overrun was due to: Staff Couns

“outside” legal expenses for ISS due process cases and BOE Audit Services for

financial audits to list a few examples that created the [$28,036] in total overruns.

Severance, Salaries and our Substitute Program actuals under ran their res

pective

budgets.

Data Reported for Benefits Program:

1] Medical/Dental/Vision Programs:

These programs were severely impacted by rising medical costs and increased usage by

our employees. As of

the end of June/2008

, we are showing a small positive varia

nce of

$4,760

revenue vs. expenses. Our “stop loss” program, which starts at $400,000,

continues to support our employees with catastrophic illnesses.

With premiums

raised 12.1% for School Year 2008

09, we

have incurred a positive

balance as of Novemb

er 30, 2008 of $65,681

. Efforts for this next School Year will focus

on: Disease Management Initiatives, continuing to raise co

pays and/or plan design

changes and begin an aggressive District Wellness Program.

2] Pay for Performance Programs:

These prog

rams ended the SY 2007

08 with a negative variance of $309,165: $4,367,254

actual dollars expended vs. $4,058,089 budgeted

–

due to greater interest than forecasted

for Certified “Outstanding” and “Skills Block” payouts. Payout caps have been put in

place

to not exceed the budget for SY 2008

09. Also, over $750,000 has been cut from

this budget as a part of the $21M. overall budget reduction for SY 2008

09.

Data Reported for Employee Hiring Process:

Background history, reference checks and licensure ver

ifications with CDE are

completed 100% on all new hires by the Human Resources office to ensure the District is

hiring qualified employees and thereby, not placing the District’s public image at risk.

From July 1, 2007 through June 30, 2008, we hired

349

Licensed,

561

Classified

, 13

Administrator and 7 Professional/Technical new employees. 100% of them met our

hiring criteria.

Mandated training was conducted by Human Resources with 100% of our district hiring

managers prior to the beginning of the spring

2008 hiring season. No hiring violations

were filed by internal candidates or external applicants. The District had no findings of

non

compliance during this report period for discriminatory hiring practices.

NOTE:

As of June 30, 2008, our SY 2007

08 E

nding Fund Balance was in compliance at 5.01%.

We anticipate non

compliance for SY 2008

09 due to paying more in salary increases

and

for

program

ming needs than was generated in revenue

by the District.

Salary

freezes or small salary increases will reduc

e pressure for the long

term on our Ending

Fund Balance

for SY 2009

10 and beyond

since salaries are annuitized. Use of “comp

time” in lieu of paying Overtime Expenses will

also, help

reduce future salary over runs.

I report

compliance.