Fiscal Year 2008 - 2009

1. Rio Grande City CISD A TEA Recognized District District Educational Budget Reform Fiscal Year 2008 - 2009 2011 – 2012 Predicted Budget Shortfall ($4,463,091 - $12,114,616)

2. News Headlines

3. News Headlines

4. News Headlines

5. News Headlines

6. 2011-12 Estimates of Three Options to Cut $5 Billion

7. 2011-12 Estimates of Three Options to Cut $5 Billion

8. Proposed Budget Reform Plan

9. Proposed Budget Reform Plan

10. Changes to Retire Rehire Employment Practices Current retire rehire staff will be subject to non-renewal or agree to a new contract with the district to include a reduction in salary. Contact person: Mr. Gilberto Garcia, Office of Human Resources

11. District Early Notification Resignation Plan • Criteria: • Five (5) consecutive years employed with the Rio Grande City C.I.S.D. • Twenty-five (25) total years of experience with any public school district accredited by the Texas Education Agency (TEA) • Will not be eligible for employment with district for at least 5 years • Available for all who qualify • Compensation: • 25 % of employee base salary • Excludes stipends, supplemental pay, incentive pay, etc. • Procedures: • Paperwork available at the Human Resources Office: • Tuesday, March 1, 2011 thru Friday, March 25, 2011 • Sign-up period begins: • Monday, March 7, 2011 thru Friday, March 25, 2011 • Excluding Monday, March 14, 2011 thru Friday, March 18, 2011 (Spring Break)

12. District Early Notification Resignation Plan • District Committee: • Mr. Roel Gonzalez, Superintendent • Mr. Gilberto Garcia, Assistant Superintendent for Human Resources • Ms. Thelma Ramey, Assistant Superintendent for Finance and Operations

13. Changes to Compensation & Benefits Leaves & Absences Policy • Changes to retirement pay: • Upon retirement, personnel shall be paid for accrued state and local sick leave for a maximum of 100 total days at a rate of $125 per day for professional employees and $75 per day for non-contractual employees. • To be eligible for the pay, an employee must meet the following conditions: • The employee is retiring and is not being discharged or non-renewed. •  The employee has at least 5 years of continuous service with the District •  The employee meets membership requirements for the Texas Teacher Retirement System.

14. District Early Notification Resignation Plan Examples Professional Employee Example Base Salary: $62,000 Compensation Pay: $62,000 X .25 = $15,500 State & Local Retirement Pay (as per policy): 100 days x $125 = $12,500 Total Incentive Pay: $28,000 Non-contractual Employee Example Base Salary: $20,000 Compensation Pay: $20,000 X .25 = $5,000 State & Local Retirement Pay (as per policy): 100 days X $75 = $7,500 Total Incentive Pay: $12,500

15. Member’s Retirement Example Retirement Date: 06/2011 Years of Service: 35 years Member’s Birth Date: 06/1951 Member’s Age at Retirement Date: 60 years and 0 months $60,000 + $61,000 + $62,000 = Three Year Average of $61,000 Monthly Standard Annuity is calculated by: (Years of Service X 2.3% X Three Year Average Salary) divided by 12 (35 X .023 X $61,000) / 12 = $4,092.08 STANDARD ANNUITY: $4,092.08