Interesting report from the 2008-2009 SANTA CLARA COUNTY CIVIL GRAND JURY .
A tidbit is the Six-figure dismissal buyouts for Fremont Union High School District presumably referring to 2006 replacement of Superintendent Dr. Stephen R. Rowley with Superintendent Polly Bove; the former filed a wrongful termination lawsuit against the district subsequently.

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WHO REALLY BENEFITS FROM EDUCATION DOLLARS?
(Hint: It’s Not the Students)

Issues

•
Are the school Boards of Trustees in Santa Clara County good stewards of our
education dollars?
•
Is the money allocated to education directly benefiting the children in the
classroom, or Superintendents/Chancellors, Boards of Trustees and Attorneys?
•
Does our county really need 34 elementary and secondary school and four (4)
community college districts to provide our students with a quality education?
•
Are the cumulative compensation and benefits provided to Boards of Trustees
and Superintendents/Chancellors overly generous?
Summary

Investigations by the 2008-2009 Civil Grand Jury brought to light instances of excessive
school district spending. There are citizens’ complaints, reports of significant budget
problems, and unusual contract buyouts. These and other issues pertaining to district
finances compelled the Grand Jury to conduct this investigation. This effort involved the
review of publicly available information (contracts, expense reports, financial
statements, audits, etc.) and interviews with district personnel.

All schools are facing unprecedented financial crises, creating the prospect of severe
budget cutbacks. For example, prior to the May 19, 2009 special election, Governor
Schwarznegger had already proposed deep cuts…..”Billions of dollars would be cut
from K-12 schools, potentially shortening the school year by a week, while financial aid
for college students would be reduced.” {Sacramento (AP) May 26, 2009} These cuts
will likely result in major staff reductions (teachers, counselors, librarians and other
support staff), increased class size, elimination of numerous programs (sports, arts and
music) and other extracurricular activities.

Despite the draconian budget cuts facing the schools in the coming months, there
appears to be little inclination on the part of the Districts to reduce or even limit the
amounts paid to Superintendents/Chancellors, Assistant Superintendents, Presidents,
and Boards of Trustees. It is difficult to understand or support continuing these
generous administrative expenses, while at the same time teachers, staff and programs
are being cut.

1

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Definitely a well paying job.
So are Cupertino School Superintendents who are paid close to $300M per year, more on this later.

At a time when California school board members were agonizing over laying off employees, slashing programs and imposing furloughs, the man who was the boards’ public face earned $1.61 million over four years.

CSBA, a nonprofit organization with a $16 million annual budget, including $5.9 million in member dues paid by nearly 1,000 school boards, initially refused to release financial information.

Enrollment in the CUSD has been increasing more rapidly in the past decade.

As the number of students increased from 15500 in 2000 to 18000 now, the district has added about 2% to its roster in the past few years as compared to 1+% at the beginning of the decade. For instance, in 2000 only 216 new students were added while a whopping 434 (2.5%!!) new students enrolled in the latest year.
In 2006 as well, the student population increased by 2.35% with the 2007,2008,2005 coming in at around 1.8 percent.

Has the demographics shifted to higher child per family ratios ?

The district and the teachers have been struggling to cope with budget cutbacks but which of these organizations are actually representing the teachers here.
The situation turns critical next year as $6M stimulus dollars (5.3M from State Fiscal Stabilization Fund and the rest from the IDEA Individuals with Disability Education Act) run out and Sacramento cuts back about $4M in funding. As is the case in all unions, cuts are made on a seniority basis regardless of performance.

Cupertino Education Association
California Teachers Association
California School Employees Association
Service Employees International Union
Cupertino Elementary School Administration Association
Cupertino Teachers Association

Here’s the press release which referenced these organizations
[i]
Cupertino Union School District Employees Vote for Five Furlough Days
$2.5 million in salary savings will help minimize employee layoffs and lessen the impact of budget cuts on district programs
MAY 7, 2010 – All district employee groups have agreed to a temporary work year reduction of
five days for the 2010-2011 school year. The five days represent $2.5 million (Ed: 2.67%) in salary savings,
which will help minimize the severity of employee layoffs and lessen the impact of budget cuts
on the district’s education programs. This furlough agreement only applies for next year.
The $2.5 million in salary savings realized from every employee taking five furlough days are
being used to restore the jobs of five middle school counselors ($400,000), custodial services
($700,000), library-media clerk hours at the elementary and middle school sites ($400,000), and a
portion of the Class Size Reduction (CSR) Program ($1 million). …
“The district and its employee associations have been discussing possible solutions for our
budget deficit for the past six months,” said Superintendent Phil Quon. “I want to thank the
leadership of the Cupertino Education Association (CEA), the California School Employees
Association, Cupertino Chapter 13 (CSEA), the Service Employees International Union Local
521 (SEIU) and the Cupertino Elementary School Administrators Association (CESAA) for their
time, hard work, and dedication working through a truly collaborative process.”
…

Cupertino parents successfully raised $2M to save about a hundred teacher jobs in the Cupertino Union School District.
The $2 million will go directly to the district to save the jobs of 107 teachers and thereby maintain the 20-to-one class size ratio at schools in the district. To balance its budget, the district had proposed bumping the average class size to a 30-to-one ratio in the upcoming school year.

This is hardly a long term solution as the economy still falters and Sacramento keeps cutting local budgets. However, it looks probable the federal government will come to the rescue with an education bailout package.
On the other hand, the $9M projected deficit amounts to $500 per student which does not seem insurmountable given the economic levels of the residents.

The Obama administration came out Thursday in support of emergency education funding legislation that would provide $23 billion to preserve teacher jobs in the face of massive impending layoffs across the country. “We are gravely concerned that ongoing state and local budget challenges are threatening hundreds of thousands of teacher jobs for the upcoming school year, with estimates ranging from 100,000 to 300,000 education jobs at risk,” Education Secretary Arne Duncan wrote

Measure B looks like it will pass with more than 2/3 vote while Palo Alto passes a whopping $589 version (with 2% inflation adjustment) of the tax. The school district’s funding at $9255 General fund dollars per pupil is quite low compared to Palo Alto at $13000 ! This cannot continue if Cupertino wishes to keep its educational level as high as it is now.

What is Measure B?

Measure B is a mail-in parcel tax measure that continues the parcel tax passed by District voters in 2004, which expires in June 2011. The annual tax rate of $98 per parcel remains unchanged. The term of Measure B is six years. Homeowners age 65 and older may file for an exemption.
…
As distinct from a school bond, which funds construction or modernization projects and by law cannot fund operations, a parcel tax—a flat fee on each parcel of property— is the only local taxing option available to help a school district pay for school programs and operations.

…

How does Measure B differ from Measure G, the unsuccessful FUHSD parcel tax?

Measure G’s term was open ended, and it included an annual inflation factor. The District heard voter concerns and has simplified the new measure (Measure B) to a term of six years with no inflation factor.

Will Measure B fix the District budget problems brought on by the economic downturn and state budget crisis?

Measure B will not ensure that we have solved our fiscal problems. Education cuts made in Sacramento over the last two years have resulted in a loss of $4.2 million to-date. The Governor’s most recent proposal and dwindling local revenues could mean an additional $8.2 million loss to our District. Fortunately, the District began in early 2008 to anticipate the need to reduce costs. Steps we have taken include working with teachers and other employee groups to defer a 2% salary increase (while teachers in neighboring districts received increases of up to 6%); reduced administrative positions and reorganized responsibilities; and consolidated Adult Education, career-technical education, and alternative and summer school programs to reduce overhead and administrative costs.

Uncertainties persist about the exact level of state funding loss we will face. What’s clear, however, is that without the revenue from Measure B, the District will be forced to cut another $5 million. At this juncture, after cuts already made in a district consistently operating with fiscal efficiency, additional cuts can only be done by reducing staff and programs. That’s an especially difficult scenario, since our enrollment is expected to increase by about 1,000 students between now and 2017.

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According to the Courier,  the failed Measure G costs a whopping 260 thousand dollars to put on the ballot. The FUHSD overreached by attempting to pass a perpetual tax during a bad recession.

The FUHSD likely overstretched in making this tax perpetual and inflation adjusted.

Here’s excerpts from the Measure B presentation from the FUHSD with some of my comments.

Fremont Union High School District - Cupertino Fremont Homestead Lynbrook Monta Vista

District API Score of 857 is third highest of all 84 high school districts in California
Cupertino, Fremont, Homestead, Lynbrook, and MontaVista have all been Named CA Distinguished Schools
Named in the top 6% of all US high schools by Newsweek

Homestead, Lynbrook and MontaVista named by US News and World Reportas in top 500 of all US high schools

Annual Budget $95 million
School Sites* 5 Buildings 81 Sq Ft of Buildings* 864,200
Total Acreage* 179 Fields Acreage* 91 (18 football fields)
Administrators 66 Teachers 490 Support Staff 269
Students 10,300
Annual Electric Bill $1,800,000 # Classes/Day >2,200

* Excluding Adult and Community Ed, the District Office and Portables
All statistics exclude property leased to third parties.

Committed to lifelong learning in an ever-changing world , Serving 38,000 students each year
Accessible weekday, weekend and evening classes at our 5 high schools and 23 other community locations
Major programs encompass hundreds of courses Career and Technical Education Older Adults Parent Education Adult Secondary Education English as a Second Language (ESL) Citizenship Adult Basic Education (ABE) Community Enrichment Classes

DISTRICT FUNDING
Total General Fund
Dollars Per Pupil(2007-2008 Fiscal Year)
Source: California Dept of Education
(Ed: Obviously underfunded, but for what reasons ? It was mentioned in the verbal presentation that one number of children in Cupertino is high relative to other school districts. At about 19000 households, that’s one HS student in 1.8 households )

Milpitas Unified $8,457
East Side Union $8,967
Fremont Union High School District $9,255
Campbell Union HS $9,345
All HS Statewide Ave $9,433

West Contra Costa $9,963
San Jose Unified $9,818
Los Angeles Unified $10,416
Los Gatos-Saratoga HS $11,264
San Mateo Union HS $11,647
Sequoia Union HS $12,450
Mtn Vw - Los Altos HS $12,699
Palo Alto Unified - $13,509

AVERAGE TEACHER SALARIES
Fremont Union High School District
Source: California Dept of Education For FY 2007-2008

Campbell Union HS $64,628
Fremont Union HS $72,288
San Mateo Union HS $74,785
Sequoia Union HS $76,194
East Side Union HS $76,370
Palo Alto Unified $81,193
Los Gatos -Saratoga HS $88,151
Mtn View Los Altos HS $93,283

Diligent residency verification Because extra kids do not bring extra money
Low overhead Fewer administrators Higher % of dollars spent on instruction & student services

Collaborative Relationships with All Employee Groups. Working together to make education work. Employees agreed to defer 2% of their pay for 08-09

Measure B Investments ..

3.6 MW of Solar Panels will save over $1,000,000/year
Technology Fund
Rebuild Tracks and Fields
Classroom and science lab upgrades and expansions
Infrastructure, site utilities, kitchen renovations

(Ed: Note a common misunderstanding is why Measure B funds are misspent , the fact is Measure B funds cannot be used to pay for day to day operations)

Bonds may NOT be used for Operational Expenses

UNCERTAIN PROPERTY TAX

(Ed: Will Cupertino housing prices leap again ? The recent sales pickup were mostly in the “low end” from new families buying into the school seasons)

2008-2009 Estimate
2009-2010 Estimate

Secured Tax
70,620,575
71,326,781

Unsecured Tax
5,458,441
5,513,025

Total
76,079,016
76,839,806

Shortfall in Needed Growth*
-2,282,370

(Ed: Where does this cost increase derive from ? If housing prices do not go up by 4 percent every year, where will this additional fund come from ? )
* Property tax needs to grow about 4% per year to keep up with average annual cost increases.

NOVEMBER 3, 2009: MEASURE G
To provide stable, local funds needed to protect teaching positions, and assure that Cupertino, Fremont, Homestead, Lynbrook, and MontaVista High School students are prepared to successfully compete for college admission, shall the Fremont Union High School District replace its existing, expiring parcel tax with a tax at the same annual rate of $98 per parcel to be adjusted annually for inflation, with all funds benefitting local high schools, and offering an exemption to seniors and the disabled?

In a twisted consequence of the state budget woes, UC Berkeley is now admitting more out of state students to meet its budget.
Chancellor Robert Birgeneau said Tuesday that his campus will be admitting as many as 600 fewer “unfunded” California students a year to offset a 20 percent cut from Sacramento. Those slots will instead go to out-of-staters.