SPECIAL BOARD MEETING: February 19, 2008

 

ATTENDANCE:

Board: April Treece, Dick Allen, Gary Eberhart, Linda Mayo, Paul Strange

Administrative Staff: Superintendent Gary McHenry; Associate Superintendent Alan Young; assistant superintendents Mildred Browne, Roger Bylund, Gail Isserman, and Dick Nicoll and General Counsel Greg Rolen

 

1.       CALL TO ORDER: President Treece called the meeting to order at 5:00 p.m. in the Board Room at the MDUSD Dent Center.

 

PUBLIC COMMENT: None

 

CLOSED SESSION: The Board adjourned to Closed Session at 5:01 p.m. in Room 6 at the Dent Center to discuss the superintendent’s evaluation.

 

2.       RECONVENE OPEN SESSION: The Board returned to Open Session in the Board Room at the MDUSD Dent Center at 7:00 p.m. President Treece led the Pledge of Allegiance to the Flag.

 

3.       PUBLIC COMMENT: None

 

4.       Public Hearing and Plan of Action to Address Decrease in Revenue from the State of California

With the Governor’s proposed cuts to K-12 grade education, funding for public education is expected to be reduced by $4.4 billion statewide. For Mt. Diablo, the proposal means a reduction of approximately $129 per ADA from Revenue Limits, $30 per ADA from Special Education, and $146 per ADA from Categorical budgets. The total loss in revenue from 2007-08 to 2008-09 is estimated to be $305 per ADA. To maintain a balanced budget in light of the Governor’s proposed budget, the Board and District staff must prepare to reduce expenditures significantly.

 

Staff report   McHenry used a Power Point presentation to explain the impact of the Governor’s proposal on the District. He said the District must cut as close to $14 million as possible from its 2008-09 budget. He has begun developing a list of possible cuts so consideration and action can begin at this meeting and continue at the regular Board meeting on February 25 and at a special meeting on March 4, and conclude at the regular Board meeting on March 11. By law, certificated employees whose jobs may be reduced or eliminated in the upcoming school year must be notified of that possibility by March 15.

 

Public hearing   Treece opened the public hearing at 7:31 p.m. John Parker, Mt. Diablo High parent, said the school needs the vice principal position that is on the list. He recalled that another parent, John Ferrante, suggested having advertising on school buses. Robert Humphrey, El Monte principal, suggested that the meetings take the form of conversations rather than presentations. With no other requests to speak, Treece closed the public hearing.

 

5.       Consider Approval of Budget Reductions

On January 10, Governor Schwarzenegger declared a State of California fiscal crisis and announced a projected deficit in the state budget of $14 billion. Cuts to public education funding will be more than $4.4 billion. The Mt. Diablo Unified School District will have to cut expenses by close to $14 million for the 2008-09 school year.

 

Criteria for Budget Reductions   To get to a decision on position and possible program reduction, the following Board of Education-adopted budget reduction criteria are being used:

1.       Insure all campuses are safe for students and staff

2.       Honor collective bargaining contracts and comply with local, state, and federal mandates

3.       Maintain programs for students

·          Analyze program effectiveness

·          Eliminate programs that are ineffective

·          Maintain programs that are effective

4.       Protect as many positions as possible

5.       Honor our commitments and our promises to the public e.g. Measure A and Measure C, Kindergarten Class Size Reduction

6.       Affect expenditure reductions across all programs

7.       Shift expenditures to grants and other funding source where possible

 

Staff report   McHenry presented a budget reduction list comprised of 29 items. He recommended the Board act on the following items at this time: 1, 3, 4, 5, 6, 17, 18, 19, 21, 23, 24, 25, 28, 29.

 

Board consideration of each recommendation

Item 1: Reduce one high school vice principal position.

Board comment   Strange noted that the position is at Mt. Diablo High and asked if the money the school receives under the state Quality Education Investment Act (QEIA) could be used to fund it. McHenry said QEIA money must first be used for class size reduction and then for counselors. Allen said he would not cut any positions on this list if there were not a budget crisis. Eberhart agreed, but felt this position is too vital to the Mt. Diablo High community to be cut. In response to Mayo, McHenry said that if action at the state level results in the District budget cuts not having to be as deep as those the Board approves, the Board could consider holding community meetings, as it has in the past, to determine the priority for add-backs. Mayo said she is hearing that the Legislative Analyst’s report on the state budget is going to be more dire than the Governor’s. Treece said she was happy to dedicate General Purpose funds to schools with the most need when additional state money became available in 2006. She is distressed to have to reduce that funding at this time and hopes the Board will be able to consider dedicating General Purpose funds to these schools again.

 

Board action   Allen moved, Mayo seconded, and the Board voted 4-1-0 (Eberhart, no) to reduce one high school vice principal position. Fiscal impact: $102,833

 

Item 3: Reduce one secretary position at each high school.

Eberhart moved, Strange seconded, and the Board voted 5-0-0 to reduce one secretary position at each high school. Fiscal impact: $341,225

 

Item 4: Reduce 0.20 Community School Coordinator at Riverview Middle.

Mayo moved, Allen seconded, and the Board voted 5-0-0 to reduce 0.20 Community School Coordinator at Riverview Middle School. Fiscal impact: $10,850

 

Item 5: Reduce 2.25 Instructional Assistants – bilingual.

Strange moved, Eberhart seconded, and the Board voted 5-0-0 to reduce 2.25 Instructional Assistants – bilingual. Fiscal impact: $89,911

 

Item 6: Reduce 1.40 FTE Campus Supervisor and Campus Supervisor II at secondary schools

Board comment   Noting that some schools affected by the removal of a campus supervisor are ones that face the greatest challenges, Eberhart said he could not support this item without seeing a plan to show the school can continue without the services. In response to Treece, McHenry explained that the reduction is not in full positions but in hours that were added to positions when the District received some additional state revenue and the Board allocated some of it to schools in need.

 

Board action   Allen moved, Mayo seconded, and the Board voted 3-2-0 (Eberhart, Strange, no) to reduce 1.40 FTE Campus Supervisor and Campus Supervisor II at secondary schools. Fiscal impact: $71,096

 

Item 17: Utilize money budgeted for GASB 45 for the 2007-08 school year to offset expenses in the 2008-09 school year

Board comment   In response to Mayo, McHenry said that in response to GASB 45, money was set aside for employee retirement obligations in case the Board wanted to put it in irrevocable trust. He recommended using the money allocated for this year, but cautioned that the District does need a plan to address retiree benefit costs. Nicoll reported that the District contracted for an actuarial study last August, but has not yet received it.

 

Board action   Eberhart moved, Allen seconded, and the Board voted 5-0-0 to utilize money budgeted for GASB 45 for the 2007-08 school year to offset expenses in the 2008-09 school year. Fiscal impact: $1,100,000

 

Item 18: Utilize money set aside for the credential penalty to offset expenses in 2008-09 school year.

Board comment   In response to Strange, McHenry said a recent progress report on an investigation to determine whether all District teachers held appropriate credentials when they started their assignments in 2005-06 is finding that the District met the requirements and, therefore, may not have to pay a penalty that the state could have imposed for non-compliance.

 

Board action   Eberhart moved, Strange seconded, and the Board voted 5-0-0 to utilize money set aside for the credential penalty to offset expenses in 2008-09 school year. Fiscal impact: $1,423,073

 

Item 19: Utilize 50% of the site and district carryover.

Board comment   In response to Allen, McHenry said the goal is to take 50 percent of each school’s and department’s carryover funds. If that action doe not reach the target of $2.1 million, he will talk to the department and program managers to see which can give up more funds. Eberhart expressed concern that some schools will lose more funds than others, that some are saving money for a large purchase in an upcoming school year. McHenry said adjustments will be made in cases where a large, essential purchase is planned. He has talked to site and district administrators about the possibility of using their carryover funds.

 

Board action   Eberhart moved, Mayo seconded, and the Board voted 5-0-0 to utilize 50% of the site and district carryover. Fiscal impact: $2,100,000

 

Item 21: Eliminate 17 teaching positions over formula.

Eberhart moved, Allen seconded, and the Board voted 5-0-0 Eliminate 17 teaching positions over formula. Fiscal impact: $939,930

 

Item 23: Increase middle school staffing ratio from 29.5 to 30. Diablo View Middle School from 28.5 to 29.

Allen moved, Strange seconded, and the Board voted 5-0-0 to increase middle school staffing ratio from 29.5 to 30. Diablo View Middle School from 28.5 to 29. Fiscal impact: $239,405 (4.33 FTE positions)

 

Item 24: Increase high school staffing ratio from 30.5 to 31.

Eberhart moved, Mayo seconded, and the Board voted 5-0-0 to increase the high school staffing ratio from 30.5 to 31. Fiscal impact: $298,566 (5.4 FTE)

 

Item 25: Increase Alternative Education formula from 25 to 27. 

Eberhart moved, Mayo seconded, and the Board voted 5-0-0 to Increase Alternative Education formula from 25 to 27. Fiscal impact: $110,580 (2.0 FTE)

 

Board comment   Eberhart thanked the superintendent for providing a considerable amount of summary budget information to Board members before this meeting. He asked for an explanation of some of the changes from the adopted 2007-08 budget and the revised budget for that period. McHenry said he and Nicoll would be happy to meet with Board members to review specifics in the budget. Eberhart said school finance is very complicated, so it’s important to be able to understand not just the budget but to know what questions to ask about it. He also expressed concern about the budget criteria and how the priority of each item is determined, particularly in regard to judgments about a program’s effectiveness. Pointing out that only one member of the public was in attendance, he said he was “appalled” that community members are not participating in the budget reduction process and encouraged the public to attend. Mayo noted that several schools promoted tonight’s meeting in their newsletters..

6.       ADJOURNMENT: Treece adjourned the meeting at 8:26 p.m.

 

                                                               

Gary McHenry, Secretary