NOTE #1: "The Contract with CUEA expires on June 30, 2012":
The 2011- 2012 Adopted Budget shows that the ratio of unrestricted salaries and benefits to total unrestricted general fund expenditures was projected to be 101.9% of CUSD's budget for 2012- 2013 and 2013 -2014.
To bring that ratio down, the District approved an early retirement plan that cost the District $2.44 million per year for five years. The first $2.44 million dollar payment for the current year (2012- 2013) was paid for with a class size increase that will expire on June 30, 2013. Average class sizes in CUSD already exceed state maximums requiring waivers. Average class sizes have increased from 20:1 in 2006 to 34:1 in 2012, with a maximum average of 35 (Elementary Schools).
- Question: How is the District going to pay for the $2.44 million dollar payment for the next four years?
- Question: Should parents expect on-going class size increases to pay for this new debt?
- Question: Because Capistrano Unified is filing "Qualified" budgets (meaning they may not be able to meet their financial commitments this year) they are required; by law, to balance their budget for the current year and two subsequent years? CUSD did not identify how they were going to pay the remaining four years of the early retirement debt nor did they identify where the $52.5 million in cuts projected for 2013 - 2014 and $51 million in cuts for 2014- 2015 would come from. How did the OCDE accept CUSD's budget and corresponding employment contracts without raising this issue?
Source: Letter dated August 7, 2012 from the Orange County Department of Education to Gary Pritchard, Board President and Joseph M. Farley, District Superintendent at the top of page 2:
A public records request for documentation of these 26 meetings determined that only three of the referenced meetings were open to the public. There is a legal issue as to whether or not CUSD complied with Public Disclosure Laws. This issue is currently being investigated by the Orange County District Attorneys office.- see articles:
- Did the Capistrano Unified School District Violate Public Disclosure Laws During the 2012 - 2013 Collective Bargaining Process?
The 1.2% Salary reduction and corresponding furlough days were not a newly negotiated item- they were part of the 2010 Collective Bargaining Agreement entered into after the 2010 Teachers Union Strike.
The "salary schedule freeze" is for 1/2 year which means that teachers will receive an increase in salary equal to 1/2 year Step & Column. This will cost the District $1,279,099 for 2012- 2013.
- Question: Why is the District increasing compensation at a time when they have future projected deficits of $103 million dollars; are cutting programs, increasing class sizes and closing school (furlough days) to balance their budget?
NOTE #4: "CUEA and District Representatives met on May 24th, May 31st and June 12th to reach a tentative agreement."
A CUEA Bargaining up-date dated June 5th, 2012 states that the CUEA and District Representatives met on May 25th, 2012, May 31st, 2012 and are scheduled to meet again on June 11, 2012.
Source: CUEA Bargaining Update dated June 5, 2012 Shown below
An internal e-mail from the Orange County Department of Education From Patricia Koch to Wendy Benkert dated January 5, 2012 states that the District is beginning negotiations with CUEA next week- (mid January).
Negotiations with bargaining units cannot begin until the initial proposals for both the District and the Bargaining Units have been made public, and the Public has been provided with an opportunity to voice their opinion about the proposals to the Board of Trustess (Government Code Section 3547).
The District made it's initial proposal public at the February 29, 2012 Board Meeting Agenda Item #9. The District made CUEAs' initial proposal public at the April 25, 2012 Board Meeting Agenda Item #4.
Negotiations between the District and CUEA should not have begun prior to April 25, 2012 because the public was excluded from the collective bargaining process prior to that date. This is a violation of Public Disclosure Laws. This issue is currently being investigated by the Orange County Department of Education.
"2. They are starting to negotiate with CUEA next week, beginning with a possible early retirement incentive that would be tied to class size increases. They don't have the final numbers so this option is still in the air but it would be a good strategy for starting negotiations. He is cognizant that additional revenues to schools are going to be dependent on the tax vote in November, so they have solve their budget hole prior to that election. He says relations with the teachers' association are very good right now. (I congratulated him on making the right guess about the trigger)"
A salary schedule step freeze from January 1, 2012 - December 31, 2012 means that their will be a salary schedule step increase from January 1st, 2013 - June 30, 2013. This increase will cost the District $1,279,099 for 2012- 2013.