Schools
CUSD is facing an $11.6 million dollar deficit for 2017-18 caused by budgeted compensation increases for employees.
The District is taking $2 million from donations and gifts to school sites to help cover the shortage.
June 7, 2017 Board of Trustees Meeting Agenda Item #25 Meeting Agenda at page 362 of 367: http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/1455008085384749213.pdf
It looks like CUSD has a $11,664,565.69 deficit and they are going to cover that with the $10,176,000.00 in the following fund transfers:
Code 9780
Recovery List One-time Carryover $4,376,000.00
Chromebook Refresh $3,000,000.00
Ed Division Carryover $800,000.00
Site Gift Carryover $2,000,000.00 (Donations of Funds and Equipment)
Total $10,176,000.00
Source: June 7, 2017 BOT Meeting page 353 of 367 http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/1455008085384749213.pdf
Code 9780 is not longer a valid code.
Source: The California School Accounting Manual page 330-10 http://www.cde.ca.gov/fg/ac/sa/documents/csam2016complete.pdf
The Resolution that Trustees are being asked to sign does not include code 9780. Codes and titles for 9700–9790 were only valid effective 2011–12. The Resolution does not properly describe the Transfers.
1) It looks like CUSD did not spend $4,376,000.00 of the money it received from the American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization Fund.
Summary
From 2009-2013, the federal American Reinvestment and Recovery Act (ARRA) legislation allocated nearly $7 billion for California’s pre-Kindergarten through grade twelve public schools. The funding was used at the local level to avoid teacher layoffs, continue efforts to close achievement gaps that exist between higher- and lower-performing students, improve educational opportunities for students, and advance education reform. ARRA funding was allotted through State Fiscal Stabilization Funds; Title I, Part A; the Individuals with Disabilities Education Act; McKinney-Vento Homeless Assistance; Nutrition Equipment grants; Enhancing Education through Technology grants; and Child Care and Development grants.
Time Period
2008–09 through 2010–11
One time funding provided over three state fiscal year budget authorities.
2008–09 through 2010–11
One time funding provided over three state fiscal year budget authorities.
2) It look like CUSD did not spend all of it's Donations from Parents for individual site Gifts, and is allocating $2 million of that fund to cover this deficit.
CUSD starts the Budget by increasing employee compensation:
1.56% COLA
Step & Column
1.50% CUEA (Teachers)
2.00% CSEA (Classified Staff)
1.50% CUMA (Management)
2.00% Teamsters
Plus increased Health and Welfare benefits.
Increases in Employee Compensation create the deficit.
Donations were meant for enrichment for students at particular school sites, not to pay for deficits caused by employee compensation increases.
Why are employees getting any compensation increases if it creates deficits?
Why is CUSD withholding funds that were meant to be spent on students?
This Resolution needs to be amended to include Fund 9780, and the Public needs to understand why Funds were not spent as they were intended?
