By Dave LaRose
Re “New Teacher Contract: Why Would District Knowingly Deficit-Spend?”
[img]1456|right|Mr. Dave LaRose||no_popup[/img]A Bit of Context for the Recent Unprecedented Tentative Two-Year Agreement Between CCUSD and Our Incredible Teachers:
- In spite of devastating cuts, CCUSD has been able to maintain a reserve in excess of 20 percent.
- CCUSD provided a 2.5 percent increase and substantial increase in health contributions in ’13-’14 for all employees. We currently project a balanced budget with a surplus for the ’13-’14 year.
- The recent tentative agreement does not put CCUSD in any financial risk whatsoever. The term “deficit spending” is tied to three-year projections that do not take into consideration:
- Annual efforts to balance the budget within each operating year;
- Expected and projected savings in operating expenses that occur annually (i.e. funds allocated but not expended);
- The significant reduction in our electrical expenses due to our Solar Investment that will provide an estimated $200,000 annually for other operating expenses.
- The many “onetime” expenses that are built into future budgets that are significant, but are not reoccurring (i.e. District-wide textbook adoptions projected at $1.2 million are built into our three-year projection).
- Continuation of retirement incentive plans that will generate significant savings (i.e. this model in the current year resulted in over $200,000 in ongoing savings).
We pride ourselves in being resourceful and responsible in our budget development and would not consider any investment – compensation or otherwise – that would put student learning at risk and/or would not be sustainable.
While our reserve is noted as a resource in three-year projections, there is no intention to depend on this significant fund (over $12 million uncommitted) for ongoing expenses. The term “deficit spending” does not mean that we are spending more money than we have. It simply means that our projected expenses (at the time of budget development – three years out) exceeds our projected revenue for that time period. Again, as noted above, this projection and this label of “deficit spending” do not reflect the ongoing annual savings, unanticipated revenues, and multiple efficiencies that occur every year.
As we did this year – balanced the budget within our operating year (while at the same time providing compensation increases, health benefit increases, many new positions to serve our students, new resources for teaching and learning, etc.), we intend to do the same in future years.
Our tentative agreement with our teachers is a product of thoughtful, intentional and responsible fiscal planning. This investment in our talented/dedicated team is not only well deserved, it is also based on proven budget decision making.
Serving the students of Culver City is a great privilege and awesome responsibility. We are grateful for the incredible community trust and support we receive.
Success for All Takes Us All!
Mr. LaRose, Superintendent of the School District, may be contacted at DavidLaRose@ccusd.org
