SPECIAL BOARD MEETING: March 4, 2008

 

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

Administrative Staff: Superintendent Gary McHenry; 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 7:00 p.m. in the Little Theater at Northgate High School.

 

2.       PUBLIC COMMENT: None

 

3.       PUBLIC HEARING

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. It could be higher. The State Legislative Analyst reported on Wednesday that the state budget shortfall could be $16 billion instead of $14.5 billion as previously stated. Schools have not received definitive information on what this means to education. 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 and to show the budget reductions proposed and approved to date as well as some ideas for revenue enhancements, such as a parcel tax, a mechanism other districts are using to generate revenue.

 

Public hearing   Treece opened the public hearing at 7:24 p.m. With no requests to speak, Treece closed the hearing.

 

4.       BUSINESS

Consider Approval of Budget Reductions

In November 2007 the District began a process of budget reductions to provide increases in compensation for all employees. By early January the Board of Education had approved approximately $3.5 million in expenditure reductions. Then, on January 10, Governor Schwarzenegger announced a $14.5 deficit in the state budget and declared a statewide fiscal crisis. Because school districts and all public agencies receive funding from the state, the budget shortfall has a tremendous impact: the entire education budget has to be reduced by $4.6 billion in 2008-09. The amount the Mt. Diablo Unified School District must reduce is $14 million. This is in addition to the $3.5 million already reduced. Responding to the Governor’s announcement, the Board has approved $9 million in budget reductions since February 12, 2008.

 

At this meeting, McHenry recommended additional reductions for Board consideration. He noted that though the Board has reduced the budget by $9 million, another $5 million must be cut. District staff must present the Second Interim Report to the Contra Costa County Office of Education by March 15. That report must include financial projections showing that the District is able to meet its expenses this year and for the following two years in order to receive a “positive” certification. If the District can meet expenses for two years, it will receive a “qualified” certification; if it meets expenses for only one year, it will receive a “negative” certification and be assigned a Fiscal Advisor by the state.

 

Recommendation

Approve the following items: 2, 20, 31, 39, 45, 46, 47, 58, 59, 60, 61, 62

 

Public comment  

Several individuals spoke in favor of the 4th and 5th grade instrumental music as a valuable education program and urged the Board not to cut it. Speakers included parents Joseph Lyons, Jacqueline Travers, Loretta McNulty, Kavitha Narayan, Gary Platt, Margaret Vercammen, and Lori Rogala; student musicians Riley Travers and Mariah Collazo of Westwood Elementary and Lizbeth Brown of Concord High; and music teacher Monica Maddern.

 

Elise Ervin, parent, asked the Board not to cut any programs that touch higher level learning. Arnie Hermes, parent, suggested revenue enhancements such as corporate sponsorships and advertising on school busses. Jenny Crosthwaite, parent, urged everyone in the Northgate High community and the District to stop bickering and work together on behalf of students.

 

Board comment    

Strange commented that budget decisions have been pushed upon the Board by the state government, which does not take education funding seriously. He encouraged people to contact the Governor and state legislators. Noting that all the items on the budget reduction list would hurt students, he said the list shows how much programs and services cost and can be used to provide talking points when individuals speak to their legislators. He stressed the District’s need for a parcel tax.

 

Mayo reported that parents and community members throughout the state are organizing to voice objections to budget cuts, not just in education but in health and service areas as well. She said the California State PTA, the Education Coalition, the California Budget Project, and other organizations each has a website to help with advocacy efforts, providing information about the budget and for contacting and sending messages to legislators. Commenting on a suggestion that the Vehicle License Fee, which the Governor eliminated, be reinstated, she explained that voters would have to pass an initiative to restore it.

 

Eberhart said he was pleased to see so many people attending the meeting and speaking to the Board. He encouraged parents to lobby for programs they support and commented that “balancing budget is something we have to do.”

 

Allen thanked parents, staff, and students for attending the meeting. He said he’s been a strong advocate for extracurricular activities, including sports and marching bands. He has talked to State Assemblyman Mark DeSaulnier and State Senator Tom Torlakson, who say the Legislature will not accept the Governor’s proposal. He called this “a stressful time for all” and noted that the Governor’s Budget Revise on May 15 could change all the figures. As Chairman of the Concord Chamber of Commence Board this year, he announced that the Chamber would support a District fundraiser.

 

Treece pointed out that at the end of June the Board must adopt a budget that shows a positive balance for the next three years. She said the way in which schools are funded in California is a concern among the business community. Businesses have a vested interest in the long-term success of public education and are willing to look at short-term support. In response to the Governor’s declaring a fiscal emergency on January 10, she said, the 18 districts in Contra Costa County must cut a total of $65 million. Industry partnerships are important as all districts need resources.

 

Board action

 

Board/Staff: Before considering any of the recommended items. Strange said he was reluctant at this time to make reductions that are not necessary before March 15 because they will not be included in the Second Interim Report. McHenry explained that he is trying to get as close to $14 million in reductions as possible. Certificated personnel must be notified by March 15 of a possible job change next year. Not all managers will receive a notice as some are in positions that cannot be cut. In response to Eberhart, Nicoll said the formal Second Interim Report will include cuts approved by the Board as of February 25, but he will be providing a supplemental accompanying report that reflects cuts approved on March 4 and 11.

 

Item 2: Reduce Director of Special Education position.

Allen moved, Mayo seconded, and the Board voted 5-0-0 to approve. Fiscal Impact: $130,000.

 

Item 20: Utilize the amount budgeted for MDEA medical benefits for the 2007-08 school year since the money cannot be used for the 2007-08 school year.

Allen moved, Mayo seconded, and the Board voted 3-2-0 (Eberhart, Strange, no) to approve. Fiscal Impact: $1,800,000.

 

Board/Staff:  Eberhart said the District has budgeted money to be spent on medical benefits to MDEA and on medical benefits to the other employee units. The other employees will be receiving benefits even though their contract is not settled. That is not the case for the teachers. McHenry explained that provisions of the non-MDEA employee contracts require payment of medical benefits. Eberhart believes the District should not spend this money. Strange agreed, saying that “it sends the wrong message to teachers.” Mayo said that using this money now will save 32 teaching positions. Teachers in those positions would not have jobs next year without this money. With other districts also making cuts, teachers who are laid off will have a hard time finding new work. Allen said that when contract negotiations resume, the offer of medical benefits will be on the table.

 

Item 31: Reorganize Maintenance, Landscape, and Custodial Services. Reduce one (1) FTE management position.

Mayo moved, Allen seconded, and the Board voted 3-2-0 (Eberhart, Strange, no) to approve. Fiscal Impact: $104,497

 

Board   Strange said he is not comfortable making cuts in positions that do not have to be noticed by March 15. He wants to see three-year projections before acting on cuts. McHenry said staff will submit the Second Interim Report, based on Board actions as of February 25, by the County’s deadline and follow up with an amended report based on Board actions after February 25. Nicoll explained that the Second Interim Report is due March 15. The County is allowing the District to submit an electronic report by the 15th and the official Board-approved report after the March 18 Board meeting. Staff will recommend that the Board approve a “qualified” certification on March 18 and then will produce a Third Interim Report in May to try to get to a “positive” certification.

 

Item 39: Reduce 1 (one) FTE Curriculum Specialist position.

Mayo moved, Allen seconded, and the Board voted 5-0-0 to approve. Fiscal Impact: $60,000 Unrestricted; $40,000 Restricted

 

Item 45: Reduce two (2) PM Custodian positions.

Mayo moved, Allen seconded, and the Board voted 3-2-0 (Eberhart, Strange, no) to approve. Fiscal Impact: $96,857

 

Item 46: Reduce one (1) Warehouse Truck Driver position.

Eberhart moved, Mayo seconded, and the Board voted 5-0-0 to approve. Fiscal Impact: $71,240

 

Item 47: Reduce one (1) additional Psychologist position.

Allen moved, Strange seconded, and the Board voted 5-0-0 to approve. Fiscal Impact: $96,621

 

Item 58: Reduce General Purpose funding for two (2) FTE, 183-day nurses; fund through Medi-Cal.

Strange moved, Eberhart seconded, and the Board voted 5-0-0 to approve. Fiscal Impact: $140,000

 

Item 59: Reduce one (1) Intermediate Typist Clerk position.

Mayo moved, Allen seconded, and the Board voted 4-1-0 (Eberhart, no) to approve. Fiscal Impact: $50,000

 

Item 60: Reduce one (1) Administrative Secretary position in the Special Education Department.

Allen moved, Mayo seconded, and the Board voted 5-0-0 to approve. Fiscal Impact: $60,000.

 

Item 61: Reduce one vacant Resource Specialist position at Diablo Day School.

Mayo moved, Allen seconded, and the Board voted 5-0-0 to approve. Fiscal Impact; $55,290

 

Item 62: Reduce two (2) six-hour Special Education Assistant positions in the Bridge program (1.50 FTE).

Mayo moved, Eberhart seconded, and the Board voted 3-2-0 (Eberhart, Strange, no) to approve. Fiscal Impact: $66,000

 

Action on additional items—43a, 43b, and 55: Eberhart asked if Items 43a, 43b, and 55 (4th and 5th grade instrumental music and freshmen sports) would be presented to the Board for consideration on March 11. McHenry said he is trying to avoid recommending any activity-based program. It will depend on how much was reduced at tonight’s meeting and how much still needs to be.

 

Eberhart moved, Strange seconded, and the Board voted 2-3-0 (Allen, Mayo, Treece, no; motion did not pass) to remove Items 43a, 43b, and 55 from the Budget Reduction List. Mayo said she cannot support the motion at this time as she believes it is necessary to keep all options open. She finds other items on the list to be distasteful, too, but has not asked that they be removed.

 

Board announcement  Eberhart reported that he had submitted a request for information under the Public Records Act to the Board president and superintendent.

 

5.       ADJOURNMENT
Treece adjourned the meeting at 9:15 p.m.

 

                                                               

Gary McHenry, Secretary