DETROIT (August 31, 2012) – Detroit Public Schools Emergency Financial Manager Roy S. Roberts today announced that the District has reached an agreement in principle with its employee unions on an innovative new shared savings bonus program covering the District’s 2011-12 and 2012-13 fiscal years.
The program will provide for a one-time bonus to employees if the District’s general fund financial performance meets a pre-determined target.
“Last year we developed a fiscally sound budget designed to continue our efforts to put the District back on sound financial footing for the future,” said Roberts. “Thanks to the hard work and sacrifice of all Detroit Public Schools employees, we project the District’s financial positioning for the fiscal year ended June 30, 2012 to be better than predicted. In fact, we anticipate that the District will experience a budget surplus of approximately $11.9 million for the 2011-2012 fiscal year.”
Because of this important accomplishment District employees, union and non-union, who are eligible based on program guidelines, will receive a shared savings bonus check in December 2012.
“When I came on board 15 months ago, this District had a deficit of $372 million. In just over a year, we’ve been able to reduce that deficit to approximately $75 million,” said Roberts. “I know this progress has been made possible because everyone involved was willing to make major sacrifices to help our kids. I also know I told everyone that while sacrifices would be required, rewards would be possible if we could begin to achieve our goals. This bonus program is proof that we are making definite progress and are moving in the right direction—both financially and collaboratively.”
The shared savings bonus program provides that for each $5 million of general fund operating surplus that the District generates for the end of the fiscal year ended June 30, 2012, and the fiscal year ending June 30, 2013, each eligible employee will receive a one percent one-time salary and wage bonus. The maximum percentage bonus is five percent of an employee’s base salary earned for the respective bonus year. The amount of any bonus will be calculated based on the District’s audited financial statements for the respective fiscal year ended. The bonus will be paid by December 20 (following completion of the audit of the District’s financial statements for the respective fiscal year). An employee would be required to be employed by the District for the fiscal year on which the bonus was based and must be an employee of the District as of November 20, 2012 for the 2011-2012 bonus and as of June 30, 2013 for the 2012-2013 bonus.
“Working together, with the primary focus of providing the best education system possible for the children of this District, I am hopeful that we can achieve results at the end of the current fiscal year that will result in similar rewards for all eligible DPS employees in 2013,” said Roberts.
While standing alongside a number of DPS union leaders at Golightly Education Center, Roberts concluded, “This program is a win-win for not only DPS employees, but also for its students and families. Enhanced fiscal performance can be achieved, long term, by stemming the exodus of families, by generating new enrollments based on new, successful and innovative academic programs and by a renewed emphasis on customer/parent relations.”
