None

Dr. Brann expressed his appreciation to Dr. Wunder, Dr. Hawn, and Mr. Amato for their work in preparing this presentation.

Dr. Wunder thanked the trustees for their investment of time and expertise, and Dr. Hawn, Mr. Amato, and Ms. Levenson for their work to position Da Vinci Schools well. 

The intended outcome of the meeting is the approval of the agenda item.

Dr. Wunder discussed Guiding Financial Principles such as Enrollment Growth, Revenue vs. Expenditures; Employer Cost Increases; Economic Uncertainty (Deferrals); School Size and Lower LCFF Levels; Grants/Fundraising; State COLAs.

Mr. Amato compared differences in revenue among Da Vinci sites, Wiseburn Unified, and a larger L.A. charter organization.  Larger schools can take advantage of greater economies of scale, although they must pay rent that school districts do not. Each year, employer costs for staff benefits like medical insurance and retirement funding increase.

Dr. Hawn compared Da Vinci to other charter school organizations and school districts. She noted that the team started with comparing credentialed staff compensation, but has moved on to other staff positions. The team worked with Egility to gather some of the comparative data.  Similar organizations (in size, budget) were compared, but all of those organizations have higher Free & Reduced Lunch counts (Da Vinci's is about 40%), which gives the other organizations higher revenue. The team also compared Da Vinci with neighboring school districts.  Da Vinci's compensation was lower than both sets of comparative organizations/districts.  

In comparing benefits, Da Vinci provides higher levels than other organizations.  Da Vinci pays an average of 80% of the benefit costs, and employees pay 20%. Charter schools pay 71%, and districts pay 89% of the benefit costs.  Looking at local neighboring districts offering the lowest monthly cost to employees, Da Vinci is competitive, though large districts are able to offer more options at lower cost to employees due to economies of scale.

Dr. Wunder shared that he does not want to imply that Da Vinci staff (counselors & teachers) work less hard, but there is a real cost to having teachers work four periods rather than five. Counselors' caseloads are lower than neighboring organizations.  Da Vinci also provides teachers a $1000 annual budget for supplying their classrooms, as opposed to other districts/organizations where teachers do not receive that type of support.

Other factors at Da Vinci contribute to teacher satisfaction, such as staff having the opportunity to give input on what is needed to serve students.  Mr. Amato shared that historically, administrative salaries as a percentage of revenue at Da Vinci have gone down.

Dr. Wunder and his team recommend to the Board that all staff receive a 2% COLA, retroactive to July 1, 2020.  Additional adjustments, also retroactive to July 1, 2020, are also recommended, and with ongoing competitive salary analysis, further adjustments.

Mr. Amato addressed the affordability of the recommendations.  In 2020-21, the compensation adjustments would leave Da Vinci with a $4.3 MM surplus and ending fund balance with operating reserves of $9.  Future projections, assuming enrollment growth, show expanding reserves.  Mr. Amato provided the recommended salary scales for teachers and counselors.

Dr. Hawn discussed comparisons with neighboring charters and districts with the recommended salary levels, saying that the increases would make Da Vinci more competitive with other districts.

Dr. Wunder commented on the risks of compensation. He noted that the team will continue to be mindful of financial risks and plan to combat them.  He asked staff for their thoughts and feedback on a Padlet. [https://davincischools.padlet.org/jhawn/nr01cy8p0wv1la9w].



.  

Dr. Brann asked the trustees for their questions and comments.  Mr. Boston and Ms. Morgan thanked Dr. Wunder, Dr. Hawn, and Mr. Amato for their work. Ms. Morgan commented that Da Vinci is in a unique position in that it is prepared to offer an increase, where other districts are not.

Mr. Meath thanked the staff for their work on the report.  He spoke of the previously approved 3% step increase, which would result in a total of 5% increase for the year.  He inquired about the steepness of the increases in the higher teacher salary levels (16 through 25), and his concern about creating out-of-market salaries at those steps in the future.

Mr. Amato shared that the previous salary scale contained steps without an increase, and the necessary adjustment for that had a flow-through to the end of the scale.  Further discussion ensued on the one-time increases, since the board agreed previously to have steps up to level 25, where other schools stop at level 20.  Dr. Wunder commented that as enrollment grows, costs will decrease through efficiencies gained.  

Mr. Meath noted that in public schools, it is not uncommon to limit the transferability of years of experience.  He does not want expenses to outrun revenue.  Dr. Hawn shared that it does not appear to impair Da Vinci's ability to hire.  Dr. Brann asked staff for the comparisons to other districts and whether or not any districts make exceptions for hard-to-fill positions.

Dr. Hawn offered to send out specific Wiseburn comparisons in response to the board's query.  Dr. Hawn added that in her group of education HR professionals, there is more talk of layoffs rather than compensation increases.

Mr. Meath shared that he is concerned that the board will be sending a "bill to the future" with the higher step level increases (steps 21 through 25).

Dr. Brann asked for the total step level increases.  Mr. Amato responded the previously-approved level increases totaled $450K.

Dr. Brann clarified that the classified staff would be included in the COLA. He commended all Da Vinci staff for their work for students during the unprecedented challenges of 2020.  

Dr. Wunder expressed his appreciation for Mr. Meath's concerns.  Dr. Brann spoke of sharing Mr. Meath's concerns.  Dr. Hawn spoke of the difficulty in comparing other districts' complex salary tables with Da Vinci's straightforward steps.

Mr. Meath recommended further study of steps 21 -25, but grant 2% over the current levels, and accept the remainder of the recommendations.  Seven teachers are in the steps 21 through 25, with about 10 more moving into that range in the next one or two years, which was taken into account in Mr. Amato's projections.

Mr. Boston commented that he believes Mr. Meath's recommendation is appropriate.  He believes the 3% is in Mr. Amato's calculations, but that he thinks it reasonable to take Mr. Meath's approach.  Ms. Morgan concurred.

Closed session entered at 6:32 p.m.
 

Public session reconvened at 6:56 p.m. 
Dr. Brann reported that no action was taken in Closed Session.