Second of two parts
How is this School Board ever going to convince local voters to trust them, by passing another double-digit, multi-million dollar General Obligation Bond (GOB)? Especially when it seems that the current Board members the voters elected to oversee their School District don’t even seem to understand the basic fiduciary responsibilities of their office.
It doesn't exactly build confidence in their elected officials when voters see School Board members running up larger and larger deficits while showing little or no concern about it publicly. Or only show concern when they are running for re-election or on the pretext of passing another bond or renewing a local parcel tax measure.
Forcing Voters’ Hands
By approving this long-term bargaining agreement now and driving up the District’s deficit spending, are Board members trying to force the hand of the voters? Are they trying to force voters into renewing our Measure EE $96 parcel tax before it expires in 2015. Supporters will try and sell its renewal as being necessary, saying that if it does not pass, the District’s deficit spending would increase even more, by another $1.2M.
Plenty for Now
The District’s starting balance for the coming fiscal year, 2013-14, is shown as having $18,384,488 in reserve. By adding all the employee bargaining units total compensation together – The Assn. of Classified Employees at $215,709, the certificated employees (Teachers Union) at $481,711 and the Management Unit at $115,614 – they would total $813K annually being added each year to the previous y total.
Wink, Wink
The L.A. County Office of Education gave its blessing that our School District was financially capable, at least in the short-term, of paying a three-year commitment. Did our District receive its positive certification because the County Office saw it had enough in its reserve fund ($18M) to back it up? Isn’t this the same one-time reserve money the Board is planning on using to pay for its on-going salary obligations?
Core Problem
This is the kind of vicious cycle governing boards find themselves in when board members start paying for on-going expenditures, such as employee salaries, with one-time savings and not with sustained state funding. Because once the reserve savings are depleted, they are lost forever.
Is It Payback Time?
The nation’s Great Recession may have technically ended back in the fall of 2009, but what about California and, in particular, the Southern California’s economy? Have we recovered? With the state’s future education funding formula still in flux, it is not the time to be handing out raises, especially long-termed, multi-year agreements to anyone in our district.
The $17M Decision
I hope School Board members realize that with their approval of this agreement, they will be setting into motion the burning through of over two-thirds of the District’s reserve savings in this agreement's first five years, and nearly all of it in only six years.
Where will that leave us? What will we do then? How will our District be able to afford its on-going payroll obligations when these one-time reserve savings are spent?
Board members thinking about re-election should realize that, come November, the voters/taxpayers will be reminded to hold them responsible for their unprecedented action. Voters will remember how they gave away the District’s savings while running up larger deficits year after year.
Mr. Laase may be contacted at GMLaase@aol.com
