CPS to Cut 100 Central Office Staff Positions

By Deborah Bayliss | As of Friday, June 21, 2013

Chicago Public Schools (CPS) is cutting 100 positions from its central office staff and scaling back administrative costs in a move that CPS officials say saves $52.3 million in its effort to fill a $1 billion 2014 budget deficit.

“Given the historic financial crisis facing our District, next year’s budget will not come without painful decisions, which is why we are making tough choices at central office in order to minimize impacts to our classrooms,” said CPS CEO Barbara Byrd-Bennett. “We will continue this work over the next several weeks to further identify reductions to central office spending to help close the District’s $1 billion deficit and make sure that every dollar helps protect precious classroom funding.”

In response to a Request for Proposals (RFP) released in March of this year to find a smaller location for its headquarters that CPS officials expects would save the District $2 to $3 million annually, CPS now has several new headquarter sites to choose from that are smaller in square footage than the current 125 S. Clark St. location.

“We’ve narrowed it down to three or four locations and will choose one that is cost effective and easily accessible to the public,” said CPS Deputy Press Secretary, Dave Miranda.

The $52.3 million is in addition to nearly $600 million in other reductions to central office and centrally funded programs made since 2011.

According to CPS officials, the $1 billion deficit derives mostly from a $400 million increase in its annual pension payment, increases in contractual salary obligations and flat or declining revenues.

The $52.3 million-breakdown includes:

$20.7 million in cuts:

• $10 million in anticipated savings from a new facilities management service model that is expected to result in a more efficient custodial service,

• $8.9 million from a reduction of 96 central office positions across multiple departments,

• $1 million in negotiated savings for landscaping, and

• $0.8 million from relocating the central office into half its current space, reflecting a decreased need for space after several years of central office layoffs.

The recent $20.7 million in cuts are landing on top of $31.6 million in spending reductions CPS announced earlier this year. Those cuts came from a variety of sources, including:

• $15 million from increasing efficiencies in district-wide engineer work and more effective management of engineering contracts.

• $6 million from renegotiated healthcare contracts with vendors for the same or better services.

• $2.1 million from reduced IT infrastructure support costs via renegotiated contracts and insourced consulting positions.

• $2 million from renegotiated office supply contracts.

• $2 million from insourced or eliminated consultants and contractors supporting systems operations activities.

• $1.8 million in savings expected from shifting from standard-sized buses toward vans for Para transit students, better aligning vehicle size with ridership.

• $1 million from a reduction in external legal counsel, managing more caseload and legal work using in-house expertise.

• $1 million from a new waste management contract that shifts the contract cost structure from a lump sum fee to a per-unit or volume-based fee that will better accommodate fluctuations in facilities and lend increased transparency on actual costs for service.

• $500,000 from the implementation of an easy-to-use purchasing system for schools that will drive the use of low-cost vendors through comparison shopping.

• $200,000 from reductions in non-personnel costs in the communications office and new fundraising partnerships for back-to-school projects.

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