Capistrano Unified School District 2016-17 Budget

March 9, 2016 Board of Trustees Meeting Agenda Item #16 Certification of the 2015-16 Second Interim Report and Adoption of Resolution No. 1516-38, 2015-16 Revenue and Expenditure Increase/Decrease

http://capousd.ca.schoolloop.com/file/1218998819331/1455438848279/2171655170586069890.pdf

at page 107

State Revenues are up again!!!!! There is an additional $2.4 billion in revenues for schools! But CUSD per pupil funding is projected to decline in 2016-17.

So why is per pupil funding projected to decrease in 2016-17?

Because the State of California's new Local Control Funding Formula Law limits K-12 per pupil funding to 2007-08 levels which will not be reached until 2021.

In 2007-08 State Revenues were $103 billion - today they are over $123 billion. The State has the money to adequately fund a quality education for every student, but is choosing not to spend money on education so that "excess" revenues can be used for other programs and entitlements like - High Speed Rail-
TRAIN or BRAIN? It's your money!

We have a Governor and a State Legislature that instituted an education funding plan that will bankrupt every school district in the State- by passing on increased CalPERS and CalSTRS contributions to Districts. By 2021- CUSD's contributions to CalPERS and CalSTRS will represent 10% of CUSD's total budget. With employee compensation over 90% there will be no money for anything else.

By 2021 CUSD will have had flat funding for 14 years- so how can CUSD continue to give employee compensation increases every year? What will they take away from students this year to pay employees more? Increased class sizes? Did you know that under Local Control Bargaining Units and Districts can negotiate any size classes they want- the State will not interfere with that "local Decision".

The District is already giving the following increases to Teamsters- CSEA and CUEA will get the same (at least).

The Tentative Agreement does the following: see: http://disclosurecusd.blogspot.com/

$204,875 Salary Schedule Increase of 4% retroactive to 2015
$102,395 Step & Column Salary Increase 4%
$ 46,218 Statutory Benefit Increase 4%
$ 50,890 Health & Welfare Benefit Increase .67%

Total Compensation Increase $306,078 for 102 employees

That is a compensation increase of $3,000 per employee.

Average Compensation if this agreement is approved will be $74,470

and:

Pay the actual cost of employee medical, dental, vision and life insurance benefits:

• HMO - family $15,204.00

• POS/PPO - family $18,522.70

* Any employee who averages 7.5 hours per day in a pay period that includes bid hours, additional hours, but not over-time, shall have their health insurance benefits based on full-time coverage for the remainder of the bid year.

If CSEA or CUEA receives an on-going salary schedule increase and/or a one time off schedule bonus the District will provide a comparable adjustment.

The District's unrestricted Salaries and benefits to unrestricted general fund projected for 2015-16 is 86.1% and 2016-17 is 84.8% - the chart below shows it much lower- at 82.6%.

The following is on page 107 of March 9th Board Meeting Agenda.
There is a range for salary as a percentage of general fund revenues because contracts have not been negotiated yet. If employees get what they are asking for 92.4% of the Districts budget will be going to employee compensation.

Sufficient funding for education requires the State to provide enough funding to each district such that school districts posses an equal ability in terms of revenue to provide students with substantially equal opportunities to achieve a quality education. A quality education is defined by the Courts to be the same opportunity to obtain high quality staff, program expansion and variety, beneficial pupil-teacher ratios and class sizes, modern equipment and materials, high quality buildings.

Serrano v. Priest 18 Cal. 3d 748 http://law.justia.com/cases/california/supreme-court/3d/20/25.html

If CUSD were to include the following in it's budget CUSD would be bankrupt- but right now parents are willing to fundraise for these items so that CUSD can spend it's budget on employee compensation and little else:

Art Programs that align with State Standards and Curriculum Frameworks

Music Programs that align with State Standards and Curriculum Frameworks

Science Programs that align with State Standards and Curriculum Frameworks

Reasonable Class Sizes - we now have people fundraising for Class Size Reduction

Teachers Salaries and Compensation Increases

Teacher Release time

Paper- Pencils- Computers

Program Expansion- CUSD has one Honors Class - Honors Algebra II/Trig - the only District in Orange County that had no honors classes until this year. They added Honors Pre-Calculus and Honor English I and II.

When parents fundraise (one-time-money) for on-going expenses and are expected to continue to do so every year- that is really a voluntary tax. Fundraising creates wealth based inequities in the quality of education that students receive within the district.

CUSD should fund all core educational programs using District funds to ensure that every student receives the quality education they are guaranteed by the State and Federal Constitution.

CUSD should file a Negative budget if they do not have sufficient funds to cover the cost to provide students with a State mandated minimum curriculum.

The District is using one-time revenues for on-going expenditures.

80% of Lottery Revenues are being used for employee compensation and the District uses fundraising and donations (one-time-money) to pay for on-going expenses like art, music, science, class size reduction, and teachers salaries and release time.

With every increase to employee compensation, CUSD increases its unfunded pension liability.

Unfunded pension liability has gone from $49 million 3 years ago to its current $57.265 million.

Our kids deserve better.