NEW

09/13/12

Office of Superintendent of Schools Board of Education Meeting of September 13, 2012 Office of Chief Financial Officer Melinda Garrett, Chief Financial Officer SUBJECT: REVISED APPROVAL OF PAYROLL RECONCILIATION PROCESS AND WAIVER OF BOARD POLICY DEC(LOCAL), COMPENSATION AND BENEFITS: LEAVES AND ABSENCES, AND RELATED POLICIES AND PROCEDURES

At the August 2012 Board of Education meeting, approval was granted for a process to reconcile payroll and waiver of related policies. Although outreach was done prior to the submission of the original board item, additional input was heard from many employees, as well as ideas generated by district leadership. Based on that feedback, this board agenda item seeks approval to offer new solutions and additional options for repayment to provide more flexibility to employees, especially those who have insufficient leave time and would face financial hardship. In recognition of the fact that employee retention is an important goal of the district, and that the payroll reconciliation process may negatively affect this goal, the administration is revising its recommendation regarding recoupment of the days advanced. The administration has considered feedback from employees, the absence of and/or minimal pay raises over recent years, and the fact that although the advancement of the days beginning in 2000 was seen as an employee friendly position to take, it has now become burdensome for employees. Specifically, the new recommendation proposes that one-half of the days advanced to each employee be forgiven. Employees affected owe from a minimum of 9 days to a maximum of 20 days. This proposal will reduce the span of days to be reimbursed by the employees to a minimum of 4 days to a maximum of 10 days. Based on board policy, each employee is advanced a minimum of 22 combined leave and vacation days as of September 1 of each year. Under the revised proposal employees will continue to have a choice of whether to use vacation/leave days or payroll deduction to satisfy the days owed to the district. Further, the revised proposal recommends that the timeframe for employees to utilize payroll deduction to reimburse the district for days advanced, should be increased by one year from the original proposal. The recommended proposal to reimburse the district for days advanced is now as follows: Employees will be forgiven one-half of the days owed

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Employees may reimburse the district using vacation days, local and/or state leave days from 20112012, 20122013, and 20132014 Employees may reimburse the district through payroll deduction to be spread over 20122013, 20132014, and 20142015.

We believe this will serve as a benefit to the Houston Independent School District (HISD) and demonstrate support of its employees, enhance employee morale, and support the retention of employees. The administration will bring forward a Resolution seeking to authorize the waiver of one-half of the days owed for action by the board at the next available board meeting. COST/FUNDING SOURCE(S): STAFFING IMPLICATIONS: ORGANIZATIONAL GOALS/IMPACT: None None This agenda item supports HISD Goal 4: Increase Management Effectiveness and Efficiency and is aligned to Core Initiative 4: Data-Driven Accountability and Core Initiative 5: Culture of Trust through Action.

THIS ITEM DOES REQUIRE CONSULTATION. THIS ITEM DOES NOT ESTABLISH, MODIFY, OR DELETE BOARD POLICY.

RECOMMENDED: That the Board of Education approve the payroll reconciliation process as revised and direct the administration to draft a resolution for adoption at a future board meeting, authorizing the waiver of one-half of the advance days balance of the affected active 12-month employees, effective September 14, 2012. Page 2 of 2