Posted 31 January 2007 - 09:04 AM
Folsom Cordova Unified School District
2006-07 Bargaining Update
January 2007
To date, the District has not yet reached an agreement with either of its employee associations regarding a compensation improvement for the 2006-07 school year. Some degree of frustration has begun to be exhibited. One way to prevent frustration from escalating to unhealthy levels is to increase the understanding of the issues involved. This document is intended to provide the District’s perspective on the current status of the bargaining process.
The nature of the bargaining process used for schools and other public agencies frequently generates some misunderstandings and emotions before an agreement is reached. A natural tension exists between employee associations that want to do the best they can for their members, and a District’s interest in balancing competing priorities. In addition to assuring that employees receive fair and competitive salaries, the District must also invest in student programs, classroom needs, safety, and caring for its buildings and grounds, as well as anticipating annual cost increases and assuring long-term financial stability.
Following is an update about the current status of the bargaining process, and some information about the funding received by the District and how it has been allocated.
Status of the bargaining process
The association that represents employees who support the instructional programs of the District, the California School Employees Association (CSEA), has filed a declaration of impasse. The District and CSEA will begin to meet with a state-appointed mediator in January to attempt to reach an agreement.
The association that represents teachers and other certificated staff, the Folsom Cordova Education Association (FCEA), and the District continue to meet. Some FCEA members have begun to display signs about the “number of days without a contract,” and approximately 150 FCEA members attended the December 14, 2006, meeting of the Governing Board to communicate FCEA’s dissatisfaction with the District’s current offer.
How much of a funding increase did the District receive from the state?
The way the District receives its funds can cause some misunderstandings about exactly how much the budget increased for the 2006-07 school year. The District’s overall budget increased by 7.1%, even though some parts of the budget received a larger percentage increase. Totaling the varied percent of ongoing increases to all the different portions of the budget determines the actual ongoing increase. We refer to this increase as the “blended” COLA because it is a blend of all the ongoing funds.
This year, the District did receive several ongoing increases. The general fund received the largest, and most widely known, increase. The increase added up to 8.62%, via a combination of 5.92% for a Cost of Living Adjustment (COLA), 1.7% for equalization (to equalize per student funds on a district-to-district basis), and 1.0% to eliminate a previous deficit factor. This is one of the largest funding increases for California schools in recent history, but it only applies to part (about 75%) of the allocations due to the District.
For the remaining 25% of our ongoing revenue, the District did not receive a similar increase. Some funds (such as state special education and transportation) received a smaller percentage increase, and some (such as federal special education and career and technical education) received no increase.
This difference in funding is important to note because employees are paid from all the funds. When a salary or benefit improvement is granted, the improvement affects all employees, even if the source of their program did not receive the same percentage increase, or received no increase.
Again, it is important to note that the overall improvement to the District’s budget was 7.1%, even though we received an 8.62% increase to the general fund, the largest portion of the budget.
Let’s talk actual dollars
Keeping track of multiple percentages can be confusing and misleading. It may be helpful to identify the actual “new,” ongoing dollars the District received for the 2006-07 school year. Taking into account all of the increases to the ongoing funds and enrollment growth, the District is projected to receive $9,250,000 above last year’s funding level.
Note: The District must comply with state-mandated accounting and audit requirements. Additionally, the District’s financial statements are reviewed and verified by an annual independent audit and are also reported to and reviewed by the Sacramento County Office of Education and the California Department of Education.
The figures presented in this document have been adjusted to reflect changes in enrollment as of the First Interim Financial Report that is filed with the Sacramento County Office of Education.
Additionally, the District has committed an additional $2,250,000 for increases this school year. These funds are not ongoing and are derived from funds not expended in 2005-06 and a projection of budgeted but unexpended funds for 2006-07. The District will need to identify future sources in the coming year(s) for any of these dollars that are committed to ongoing expenses.
The $9,250,000 of new funds and the additional $2,250,000 identified by the District yield a total of $11,500,000 for 2006-07.
How can the money be spent?
Even though a portion of the money can be spent at the Board’s discretion, some of the funds must be used for mandatory or unavoidable expenses.
Annual increases and mandatory or unavoidable expenses
The District must fund certain increases over the 2005-06 budget and some other unavoidable costs. Those costs include:
• Automatic annual salary improvements (step and column) $1,400,000
o This total reflects the savings from retirees
• Employee and retiree benefit increases $1,250,000
• Staffing for enrollment growth (12 new teacher positions) $ 650,000
• Other staffing (14.6 teacher positions) $ 705,000
o For student/program needs, contractual class size, etc.
• Operational cost increases (gas, utilities, etc.) $ 800,000
• Preparing to open Vista del Lago $ 200,000
• Initial staffing for Navigator (principal, support staff, etc.) $ 285,000
Total $5,290,000
After accounting for the mandatory or unavoidable costs, the District can allocate any remaining funds to address other priorities such as investing in compensation improvements and programs.
Current commitment to salary and/or benefit improvements
The District has committed the following to compensation improvements (salary and/or benefits) for its employee groups. These amounts reflect a proposed 5.25% increase to employee salaries and/or benefits.
Note: The proposed 5.25% increase equals 74% of the blended COLA of 7.1% cited earlier.
• Certificated (FCEA) $3,440,000
• Classified (CSEA) $1,210,000
• Management $ 450,000
Total $5,100,000
Investments in programs
The District chose to invest in some priorities established for the 2006-07 school year. In particular, the Board made a significant investment in special education programs to bring existing programs into compliance, and also to develop programs that will reduce future costs. This investment will generate both better programs for students and potential savings for the District. The cost for students placed in non-public schools because the District does not have a comparable program averages $30,000 per student. By creating programs to serve more of our special needs students, we can assure quality and reduce or control costs.
Investments in District needs and/or restorations include:
• Special education (13 positions) $ 860,000
o Teachers/certificated, classified, and management
• Maintenance improvements (2 positions) $ 125,000
• Testing and assessment (1 position) $ 50,000
• Health services (1.8 certificated and classified positions) $ 75,000
Total $1,110,000
What it all adds up to
As occurs every year, the Governing Board must balance competing priorities and make choices about how to spend its limited resources. At present the funding has been allocated as follows:
Available funding $11,500,000
Mandatory or unavoidable costs $5,290,000
Proposed salary and/or benefit improvements $5,100,000
Investments in programs and services $1,110,000
Total $11,500,000
For the District to offer more than a 5.25% increase would require budget cuts in other areas.
Where do we go from here?
The District will continue to bargain in good faith with its employee associations. While there can be honest disagreements over the competing priorities, the District has an absolute commitment to the integrity of its budget process. The District has faith in the bargaining process and its employees.
Comparisons with our neighboring districts indicate that the District’s salary schedules are among the best in the area, but our benefit package has fallen behind. The District shares an interest in improving the benefit package for its employees and will work with the associations to explore and consider current year and multiple year commitments to improving the current benefit offerings.
Are teachers working without a contract? Since the FCEA contract expired on June 30, 2006, what happens to the provisions in the contract while we continue to bargain over compensation and benefits?
By law, the collective bargaining agreement (contract) between a school district and its employee associations remains in effect until both sides agree on a successor contract. All of the provisions of the agreement must be honored by the District and its employees.
An historical perspective
For the past several years, the District has had to make budget cuts to instructional programs and services to students. Some of the budget cuts have been restored, but $5,618,300 in cuts to personnel and site budgets have not been restored. The following chart indicates the percentage of the budget and percentage of reductions absorbed by the employee groups and site/department budgets.
% of total budget $ amount cut % of cuts
Non-management certificated staff and services 47.8% $1,325,000 23.5%
Non-management classified staff and services 15.6% $1,589,000 28.2%
Administration and management 5.6% $ 896,300 16.0%
Site and department budgets 4.3% $1,808,000 32.2%
Additional questions
Any questions about the information presented in this communication may be addressed to Superintendent Patrick Godwin or Deputy Superintendent Debbie Bettencourt.
"Sometimes on purpose and sometimes by accident, teachers' unions have a long history of working against the interests of children in the name of job security for adults. And Democrats in particular have a history of facilitating this obstructionism in exchange for campaign donations and votes." . . .Amanda Ripley re "Waiting for Superman" movie.