Board, Superintendent, Unions Work Jointly On Paydate Solutions

Detroit, MI – Working collaboratively, Detroit Board of Education members, Detroit Public Schools General Superintendent Connie K. Calloway, Ph.D. and leaders of the district Coalition of Bargaining Unions have agreed to a contingency plan which would assist the district to avoid any further borrowing by moving the next paydate back one day.

Dr. Calloway said, “This is a proactive move that will allow us to continue to prepare for the successful opening of school for our students. I am very pleased that Board members and union leaders have endorsed our efforts to avoid a short-term bridge loan and its related costs to cover the scheduled August 19, 2008 payroll. All parties have agreed that paydate would be moved one day, to August 20, as a fiscally prudent measure.” She added that the district will notify all major banking institutions in order to minimize any impact on its employees.

Board Vice President Joyce Hayes-Giles said, “This is another indication of the critical financial situation in the district, and while we always want to be able to pay employees on time, in this particular situation one day would save up to $1 million in loan fees. We thought it best to be proactive to advise our employees of the possible impact of this in advance, allowing them to plan and manage its potential impact.”

Ruby Newbold, head of the Coalition of Bargaining Unions which unanimously agreed to support the change, commented, “This is the best outcome for the district and the students,” and Detroit Federation of Teachers President Virginia Cantrell said, “We are pleased with the way Dr. Calloway has handled this critical issue, and that she has shared it with us so that we can inform our members who can better plan for the one day delay in pay.”

Additionally, beginning next week, union representatives, parents and district officials will hold meetings of a Budget Reduction Committee to review implementation of the recommendations adopted by the Board as part of approving the 2008-09 budget.

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