School Board Struggles to Bridge Budget Gap

The Beverly Hills Unified School District Board of Education is wrestling with a significant budget gap after rejecting 10 proposed teacher layoffs for the upcoming school year.

Compounding its woes, the board may be forced to lower its reserve to the legal limit to compensate for $1.4 million in past accounting errors.

"I don't think it's fair to make up those losses with teacher salaries," said board member Brian Goldberg, who voted to save teacher jobs.

"Keeping 10 positions won't fill all gaps, but it's a step in the right direction," he said at the scheduled May 11 board meeting. "The teachers in the classroom make the difference for our students."

The district must now find $720,000 to cover the salaries.

"The money will come out of the reserve if there is not enough," said Mary Anne McCabe, interim assistant superintendent of business operations. "It's going to be tight but I think we can get by."

The 3 percent reserve in the district's budget could drop to 1 percent because all the proposed layoffs were rejected, she said.

"Saving these teachers' jobs does not put the district in a straitjacket financially," said Chris Bushée, president of the Beverly Hills Education Association.

Bushée said the board has pursued teacher layoffs for three consecutive years.

After rejecting the proposal to lay off 10 teachers, the board met again two days later for an emergency session to consider an amended resolution calling for six teachers to be laid off. Held in the administrative boardroom at the district office, the meeting was packed with teachers, students, parents and community stakeholders.

The layoff debate continued as board President Steven Fenten said that six voluntary teacher retirements and at least three leaves of absence affecting the 2010-2011 school year would amount to about $925,000 that could be used to avoid laying off the six teachers proposed in the amended resolution.

The savings could keep the district budget afloat and enable it to maintain positive certification standing with the Los Angeles County Office of Education to avoid a financial takeover.

Myra Lurie, the only board member who supported the layoffs, said that the district needs to focus on building its reserve up to 10 percent.

"We have put ourselves at risk," Lurie said. "It's difficult and heart wrenching to think of laying off some of our most enthusiastic young teachers… but we have to do it."

She said that Beverly Hills schools are overstaffed in light of declining enrollment and the district's recent decision to prevent permit holders from continuing to attend its campuses.

Even if the district followed through with the proposed teacher layoffs, Lurie said average class sizes would remain at less than 21 students.

Teachers facing cutbacks in pay and working hours said they would be unable to continue working for BHUSD. "We're not going to stay around," said Ashley Ireland, a fourth-grade teacher at Beverly Vista. "We can't afford to."

At the scheduled board meeting, elementary school students also urged the board not to lay off their teachers.

"[Ms. Ireland] challenges us and always tells us to do our best," fourth-grader Daniel said. "She should stay because she could encourage many other students throughout her years."

In the end, the board majority refused to approve the amended proposal.

"When you say you support schools, you have to support teachers," Lisa Korbatov, vice president of the board, said after the vote.

The board did approve a separate resolution 3-2 to consider implementing furlough days to bridge the budget gap. Korbatov called this measure an "olive branch" solution to saving teachers' jobs.

"A furlough is a way I believe we can give everybody a little bit of a haircut without chopping off anybody," Lurie said.

The district can implement three furlough days during the upcoming year for a total savings of $330,000, as long as the teachers' union agrees during negotiations before the June 30 deadline, according to Alex Cherniss, the director of human resources for the district. Cherniss said the district would consider cutting only non-instructional, pupil-free staff development days.

"We have an incredible opportunity here to continue educating young men and women who have opportunities to be better leaders," said board member Jacob Manaster.

Although Supt. Jerry Gross said the district is short $3 million in expected tax revenue, Goldberg said tax revenue on a whole is up 14 percent.

"Our city and district tax receipts are up beyond our earlier predictions," Gross said. "We haven't seen the hard numbers yet but right now it looks like it's going to be better than we anticipated."