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Budget, Council Put Snags in Fenty's Plans
New Classes Are Delayed; Bill Could Hinder Closings

By David Nakamura and Theola Labbé
Washington Post Staff Writers
Wednesday, December 12, 2007

Mayor Adrian M. Fenty's fast-paced efforts to overhaul District public schools stumbled yesterday when school officials were forced to postpone recently announced education initiatives and two D.C. Council members proposed legislation that could slow down the plan to close nearly two dozen schools.

Fenty (D) and Schools Chancellor Michelle A. Rhee announced at a morning news conference that they would delay a planned expansion of art, music and foreign language classes to help close a budget gap of more than $100 million. The programs were originally set to begin in the spring. All told, Rhee said she has identified $17 million in savings and another $15 million in potential new revenue that will go toward eliminating the budget shortfall reported to the council by city finance officials two weeks ago.

Yesterday afternoon, council members Marion Barry (D-Ward 8) and Harry Thomas Jr. (D-Ward 5) introduced a bill that would require Fenty and Rhee to get council approval before moving forward with their controversial plan to close 23 schools by fall. Thomas also proposed a measure to tighten city policies governing the sale of public property, including schools that might be closed.

The council has not set a date to vote on either bill, and it was not clear how widespread support was for either proposal.

Barry said his legislation was an attempt to force Fenty to seek more input before moving forward with his effort to improve the 50,000-student school system.

"They developed a way of operating I think most of us don't like," Barry said. "This has gone too far."

Fenty took control of the schools in June, saying he wanted to move as quickly as possible to improve the system, which is saddled with poorly trained teachers, underperforming students and crumbling buildings. But as the mayor has moved forward, he has met unforeseen challenges.

Fenty said repeatedly during his campaign that the system, which has a budget of about $1 billion, does not need more money. But over the past several months, Pamela Graham, the school system's chief financial officer, and consultants hired by the city from Alvarez & Marsal identified a potential budget shortfall of more than $100 million.

Last month, Fenty asked the council to appropriate an additional $81 million to cover some of the deficit and pay for Rhee's plans to restructure the central administration. The council is scheduled to vote on that proposal next week.

Administration officials said the cost-cutting announced by Rhee yesterday will make up the rest of the shortfall, most recently pegged at $113 million. Initially, Rhee and Graham had disagreed over the size of the budget gap. But Fenty aides said yesterday that the two parties now agree on the gap and how to balance the budget.

"In order to get ahold of every line in the budget, it will take a lot longer than being in control for six months," Fenty said at a news conference with Rhee at Beers Elementary in Southeast.

The steps that Rhee outlined yesterday were based in part on recommendations last month from Graham and the consultants. In a memo dated Nov. 21, Graham recommended a hiring freeze, noting that new hires, promotions and reassignment in the school system since August had cost nearly $8.2 million in salaries and benefits.

Not only did Rhee institute an immediate hiring freeze systemwide, she announced a new hiring policy effective immediately, according to a Dec. 1 memo. In the letter, addressed to school employees, the chancellor wrote that "you are not permitted to hire, promote, or transfer DCPS staff without prior written approval from me." Before that directive, the director of human resources and the chief financial officer approved hires. Exceptions may be made for essential personnel after a review, Rhee wrote.

Rhee announced the hiring freeze and a freeze in spending on supplies and equipment at yesterday's news conference.

George Parker, president of the Washington Teachers' Union, said yesterday that it was good that Rhee was tackling the hiring issue because previous superintendents have wrestled with personnel costs. But he said it was critical that the policy not cause teaching vacancies to go unfilled.

"We have to see what effect this will have on filling teacher vacancies in a timely manner," he said. "If there's a delay, then it has to be reworked."

Alvarez & Marsal wrote to Rhee on Nov. 26 that she should delay spending money on art and music programs and freeze spending on supplies and equipment at the central office and schools.

Rhee said she also plans to bring in $10 million in new grants and private donations and $5 million from fees community groups pay to rent school facilities on evenings and weekends.

Rhee had hoped to begin adding art, music and language this school year at a cost of $6.8 million. However, the expansion of those programs will have to wait until fall, she said.

"We had hoped to jump-start the initiatives to get some momentum going into next year," Rhee said.

Staff writer Nikita Stewart contributed to this report.

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