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CUSD to Vote to Approve 2018-19 Budget

Despite Record High Revenues- Employees Win Big- Not much in the budget for students

Dawn Urbanek, Neighbor

Posted Tue, Jun 19, 2018 at 7:50 am PT|Updated Tue, Jun 19, 2018 at 7:52 am PT

June 20, 2018 CUSD BOT Meeting Agenda Item #48 2018-2019 BUDGET ADOPTION

Board Agenda page 889

CUSD Has record high revenues.

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Despite record high revenues and the 5th consecutive year of across the board compensation increases, there were no increases to school site budgets, no reductions to class sizes and facilities have $189 million in “Emergency” facility needs.

Enrollment is declining:

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2017-18 47,475
2018-19 47,051

ADA

2017-18 $8,293
2018-19 $8,822

Despite Record High Revenues- site supply budgets are unchanged at

K-5 $21/Student
6-8 $25/student
9-12 $33 per student

Staffing Formulas also remain the same (no class size reductions despite record high revenues:

*K = 30.5:1
1-3 = 30:1
4-5 = 31.5:1
*6-8 = 32.5:1
*9-12 = 34.5:1
*Staff Full Time K at 28.5:1
*Includes Prep Time and Electives

Total Revenues $485,369,622
Total Expenditures $501,740,890
Across the Board Compensation Increases for all employees (5th consecutive year)

CUEA 1.5%
CSEA 2.0%
CUMA 1.5%
Teamsters 2%

PERS

2018-19 18.062%
2019-20 20.8%
2020-21 23.5%
2021-22 24.6%

STRS

2018-19 16.28%
2019-20 18.13%
2020-21 19.10%

CUSD has entered into contracts for three years with all employee groups 2017-18, 2018-19, and 2019-20
Employee Benefits

STRS 16.28%
PERS 18.062%
OASDI 6.200%
Medicare 1.450%
Workers Comp 1.500%
Unemployment 0.050%
OPEB – Active 0.80%
OPEB – All 0.27%

Employee Compensation is 89% of CUSDs total budget.
CUSD Long Term Commitments

Capital Leases $1,129,428
Certificates of Participation $8,800,000
General Obligation Bonds $24,408,787
Early Retirement $16,192,730
Total $53,773,979

Unfunded Liabilities for post employment benefits $52,818,201
To receive benefits employee has to be at least 53 with ten years of service.
CUSD is reducing its teaching staff:

2017-18 2,178.2
2018-19 2,135.7
2019-20 2,116.7
2020-21 2,099.7

Learn More

CUSDWatch Comment
Minimum Contribution Proposition 51 School Facilities Fund

CUSDWatch Comment:

The District reports reserves based solely on the General Fund- but... under Local Control there are only four accounts that are actually restricted.

Special Education, Foster Youth and two Native American youth programs.

That means CUSD can move money between all other funds- so the "Reserves" are for all funds except the four.

Are Trustees aware of this?

The following was calculated as of September 2017 (lag one year)

THE SHELL GAME
Current legislation, policies, and practices allow public school districts to deceive the public about the districts’ financial positions by focusing on budgets that never manifest and “reserves” that only reveal the tip of the iceberg.

These practices unnecessarily complicate every district function from the LCAP process to labor negotiations to foundations and bonds.

Stakeholders are in the dark.

Billions of dollars of taxpayer money that was meant to educate children are being wasted, hidden below the surface and growing annually, and school districts budgets show they plan to continue the trend.

The practice also makes one call to question how all public agencies present their information.

CUSD HAD $16 MILLION IN GENERAL FUND DOLLARS THAT IT CHOSE NOT TO SPEND IN THE CLASSROOM OR TO FIX AND MAINTAIN FACILITIES INSTEAD IT IS BEING HORDED.
CUSD HAS GROWN ITS ACTUAL RESERVES FROM $51 MILLION IN 2011-12 TO ITS CURRENT $133 MILLION

CUSDWatch Comment:
In September we can add the 2017-18 data and compare apples to apples.

THE CORRECTING ENTRIES ARE THEN DONE ON CONSENT CALENDAR AS FOLLOWS:

September 13, 2017 CUSD BOT Meeting Agenda Item #13 RESOLUTION NO. 1718-14, AUTHORIZING THE INCREASE AND DECREASE IN APPROPRIATIONS FOR THE FISCAL YEAR ENDING 2016- 2017 page 472 of 998

September 13, 2017 CUSD BOT Meeting Agenda Item #14 RESOLUTION NO. 1718-15, RE-APPROPRIATION OF CARRYOVER FUNDS page 476 of 998

September 13, 2017 CUSD BOT Meeting Agenda Item #15 RESOLUTION NO. 1718-16, ADOPTING THE 2016-2017 ACTUAL GANN LIMIT AND THE 2017-2018 ESTIMATED GANN LIMIT page 481 of 998

The work that CalProEd has done to date found the "Actual" Reserves for the following school districts:

Why? Kickbacks? Pet projects without oversight? Job security for admin and union?

CUSDWatch Comment

CUSD's Long Term Commitments:

CUSDWatch Comment

Unfunded Liabilities $53 million dollars for pension benefits:

CUSDWatch Comment

Unfunded Liabilities for benefits other than Pensions:

CUSDWatch Comment

CUSD Unfunded Liability for Self Insurance Program

CUSDWatch Comment

CUSD plans to reduce its teaching staff going forward to save money. Class sixes stay the same but 78 teachers at average compensation of $111,000.00 per year are no longer teaching. That is $8.7 million dollars wasted on teachers who no longer teach!