Count 9

2012-13 EMPLOYMENT CONTRACTS AND 2012-13 ADOPTED BUDGET WERE ENTERED INTO ILLEGALLY.  CONTRACTS ENTERED INTO ILLEGALLY ARE NOT ENFORCEABLE.

SYNOPSIS:

CUSD's 2012-13 Employment Contracts and 2012-13 Budget were entered into illegally; in violation of State and Federal laws, Capistrano Unified School District Board Policies and employment contract provisions regarding good faith negotiations.

Contracts entered into illegally are not enforceable.

The illegal contracts resulted in the unjust enrichment of public employees at the expense of students and taxpayers. 

Employees were unjustly enriched in the amount of $19.8 million dollars per year; since July 1, 2012  (6.9% in salary schedule reductions that were not taken). 

As a result of these illegal contracts, students have been forced to endure overcrowded classrooms, overworked teachers, sub-standard facilities and less instructional time then their peers in other districts.

As a result of these illegal contracts there has been a notable decline in the academic performance of students across all demographics.

CUSD knowingly, and intentionally engaged in conduct that denied students their fundamental right to equality of educational opportunity, and prevented students from achieving their individual academic potential, in order to protect the salary schedule of all district employees. 

In the adoption of the 2012-13 employment contracts and 2012-13 budget, the majority, union elected Trustees, used parliamentary maneuvers to prevent minority Trustees from speaking on the record. Majority Trustees breached their legal fiduciary duty to taxpayers and students. This conduct was recorded in Board Audio and documented in e-mails from the Fiscal Expert assigned to CUSD.  

The 2012-13 Budget was based on the passage or failure of Prop 30.

If Prop 30 failed CUSD needed to cut it's budget by $51 million.

If Prop 30 passed, CUSD needed to cut it's budget by $30.2 million.

CUSD identified $51 million in cuts:

$30.2 million: 

1.2%  Salary Schedule Reduction (From 2010 Teachers Strike per mediation - not a newly negotiated item). 

3- Non-instructional furlough days representing a one time 1.62% pay cut for 2012-13 school year (From 2010 Teachers Strike per mediation - not a newly negotiated item). 

5 - Instructional furlough days representing a one time 2.7% pay cut for the 2012-13 school year.

Delay of Step and Column for 1/2 year of .5% (means there was a 1/2 year Step and Column salary increase)

$19.8 million:

10 - Instructional Furlough Days representing a one time 5.4% pay cut for 2012-13 school year 

1.5% Salary Schedule Reduction

Savings from each 1% in Salary Rollback = $2,884,001 (1.5% = $4,326,001.5) 
 
Management (CUMA) Each 1% = $ 194,030
Classified (CSEA) Each 1% = $ 589,227
Certificated (CUEA) Each 1% = $2,031,912
Teamsters Each 1% = $ 68,832

When Prop 30 passed, CUSD unilaterally (without public input) choose not to implement $19.8 million salary schedule reductions. CUSD chose to maintain maximum salary schedules rather than provide students with high quality staff, program expansion and variety, beneficial teacher-pupil ratios and class sizes, modern equipment and materials, and high-quality buildings.

CUSD intentionally mis-represented the facts to the public. When the 2012-13 Budget was adopted, the CUSD press release stated:

"Budget Balanced with Employee Concessions - Solutions to $51 million Deficit Found Through Negotiations".

CUSD actively "advocated" for the passage of Prop 30. CUSD threatened parents with a total of 18 furlough days if voters did not vote to approve Prop 30. CUSD remained silent on a competing education funding bill, Prop 38.

When Prop 30 passed the CUSD press release stated:

"Election means no changes to Calendar- Student Instructional Days Remain at 175; no additional employee pay cuts".  

CUSD uses a "Multi-pronged approach" to balancing its budget. This approach assumes that cuts start with unilateral reductions to non-negotiated items, and then only looks to negotiated concessions from employee groups if needed. This is a fundamentally flawed approach to addressing CUSD's budget shortfalls, and is intentionally designed to protect employee salary schedules. Everything, ("unilateral reductions" and "negotiated concessions") should be on the table together. To force unilateral cuts first, then back into negotiated concessions as a last resort, results in a disproportionate amount of cuts to everything except employee salary schedule. From 2010 to the present CUSD has cut $152 million from its budget (32%); yet the salary schedule for teachers has only be reduced one time, a 1.2% salary schedule reduction as a result of the 2010 teachers strike.

The 2012 -13 budget was balanced with $30.2 million in cuts:

$11 million in Unilateral- Non-Negotiated Reductions 

Management (CUMA): $1.5 million
Classified (CSEA): $3.5 million
Certificated (CUEA): $3.5 million
Redirect Categorical Funding: $1.1 million
Other area of savings: $1.4 million

$8.2 million Savings from Class Size increase: = (2 students all grades)

$2.7 million Savings from Freezing Salary Schedule: 

Management (CUMA) $162,796 mid-year Jan 2013
Classified (CSEA) $932,554 full-year
Certificated (CUEA) $1,432,144 mid-year Jan 2013
Teamsters $207,044 full-year

$9 million Savings from 8 Furlough Days all employees (3 Non-Instructional + 5 Instructional)  

Management (CUMA): $100,059 per day
Classified (CSEA): $338,361 per day
Certificated (CUEA): $1,191,788 per day
Teamsters: $43,415 per day 

CUSD employees received a one time reduction in pay 8 furlough days (4.32% pay decrease). 

There was no newly negotiated decrease in salary schedule for 2012-13 despite having to cut $30.2 million from the District Budget. The Employe Contracts were knowingly and intentionally negotiated behind closed doors with the unified objective of protecting employee salary schedules rather than promoting what was in the best interest of educating students.

As a result of these illegal contracts, employees were unjustly enriched at the expense of the quality of education CUSD students receive. Students have been forced to endure overcrowded classrooms, overworked teachers, sub-standards facilities, and less instructional time then their peers in other districts.The continued lack of funding for high quality staff, program expansion and variety, beneficial teacher-pupil ratios and class sizes, modern equipment and materials, and high-quality buildings has resulted in a notable decline in the academic performance of students across all demographics preventing CUSD students from achieving their academic potential and placing them at a disadvantage to their peers in other Districts. 

Taxpayers have also been harmed as a result of these illegal contracts. Protecting salary schedules and giving generous annual raises increases the pension costs.  The costs of retiree benefits for educators would not have increased so much. The high pension costs include those from unfunded benefits for previous retirees, which consume a large and growing share of public tax dollars spent on K–12 education. The amount that does not reach the kids is increasing steadily alongside these raises at the expense of the quality of education students receive. Employee compensation at CUSD is over 90% of the Districts total budget. The State is increasing the required contribution that District's must make to CalSTRS and CalPERS. By 2021 contributions to CalSTRS and CalPERS will be 10% of CUSD's total budget; making employee compensation over 100% of CUSD's budget, leaving nothing in the budget for everything else. 

Unfunded pension liabilities have increased from $49 million in 2011 to $57 million in 2015. With the 8.67% across the board compensation increase for 2016-17 the unfunded liabilities will be well over $60 million and growing.

BACKGROUND 

1.    The California Constitution gives education funding a unique priority above all other state funding obligations by requiring:

"... from all state revenues there shall FIRST be set apart the monies to be applied by the State for support of the public school system..."

Cal. Const. art. XVI, §8. (Emphasis added) 

California's public education system is the State of California's number one constitutionally mandated spending priority. However; Defendants, the peoples elected representatives continue to withhold tax revenue that should be allocated to education of our students, and spend that revenue to create new programs and entitlements that are not constitutionally mandated. The Peoples elected representatives have in fact, unilaterally shifted the People's Constitutionally mandated spending priorities without a vote of the People. The continual lack of educational funding from the State of California has forced the Capistrano Unified School District to cut $152 million from it's budget since 2006 (32%). Despite the longest economic recovery in our nations history, the People's elected representatives have refused and failed to restore funding to public education, and have in fact implemented a new education funding law that limits per pupil funding to 2007-08 levels + inflation not to be reached until 2021. In 2007-08 State general fund revenues were $103 billion. Today they are estimated to exceed $123 billion. The State has sufficient revenues to provide every student with sufficient funding to achieve equality of educational opportunity, but is choosing not to honor its legal commitment to taxpayers and students. The continual lack of adequate funding from the State of California has resulted in a notable and measurable decline in the academic performance of students in the Capistrano Unified School District across all demographics. Every student in the Capistrano Unified School District is being denied their constitutional right to sufficient funding to achieve equality of educational opportunity.

2.     The State Legislature has a constitutional mandate supported by the Equal Protection Clauses of both the United States and California, and State and Federal case law, to provide every child in the state with sufficient funding to provide all students with substantially equal opportunity to achieve a quality education.  

"... equality of educational opportunity requires that all school districts possess an equal ability in terms of revenue to provide students with substantially equal opportunities for learning."

The Court defined that to be the same opportunity to obtain high quality staff, program expansion and variety, beneficial teacher-pupil ratios and class sizes, modern equipment and materials, and high-quality buildings.

[Serrano v. Priest 18 Cal. 3d 748]

Under the law, CUSD is entitled to sufficient funding to:

obtain instruction in all state mandated core subjects that align with minimum state mandated Content Standards and Curriculum Frameworks,

obtain high quality staff,

obtain program expansion and variety,

obtain beneficial teacher-pupil ratios and class sizes,

obtain modern equipment and materials,

attend school is high-quality buildings.

The State's new education funding law "Local Control Funding Formula" determines per pupil funding using the following formula:

Base Funding Grant + Supplemental Grant + Concentration Grant = Per Pupil Funding

The "Base Grant" is universal for all students. 

The "Supplemental Grant" provides additional funding to districts based on the percentage of students in the district that are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care. 

The "Concentration Grant" provides even more funding for districts that have large concentrations of students that are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care.

The intent of the law is to provide a base level of funding for all students, then provide additional funding for high needs students who are defined as students who are English Language Learners, receiving Free and Reduced Lunch and/or are in Foster Care. Under this formula, to meet the constitutional mandate, the Base Funding Grant needs to be the minimum funding needed to ensure all students have the same opportunity to obtain high quality staff, program expansion and variety, beneficial teacher-pupil ratios and class sizes, modern equipment and materials, and high-quality buildings.

In December 2006, the State of California commissioned a study entitled "Efficiency And Adequacy in California School Finance: A Professional Judgement Approach To Determine The Cost To Adequately Educate A Student". Results of that study (the cost to educate a student in 2007-08) concluded that per pupil costs with special needs weightings in 2007-08 were found to be:  

Average:     $11,094 to $12,365

Urban:        $11,508 to $12,718

Suburban:   $10,726 to $12,077 * Capistrano Unified School District

Towns:        $ 8,932 to $  9,896

Rural:         $10,615 to $11,881

Source: https://cepa.stanford.edu/sites/default/files/19-AIR-PJP-Report(3-07).pdf at page xii

When the State of California instituted the LCFF is set the Base Funding Grant at $6,500 ($2,432 below what the State knew, or should have known it cost to provide any student with a state mandated minimum education).

Those districts with a low percentage of students who are English Language Learners, receiving Free and Reduced Lunch, and/or are in Foster Care are funded solely by the Base Grant. 

The State is knowingly and intentionally underfunding every school district that has a low percentage of students who are English Language Learners, receiving Free and Reduced lunch and/or are in Foster Care. The State of California is using the People's public education system to raise revenues and re-distribute wealth, not educate it's students.The LCFF law denies every student in the Capistrano Unified School District of their Constitutional right to a free and equal minimum public education simply because of where they happen to live, and irrespective of an individual students wealth, race or ethnicity. This constitutes invidious discrimination, and is a violation of the Equal Protection laws of both California and United States of America. 

By 2021, the Capistrano Unified School District will have had flat funding for 14 years at less than $8,000 per pupil. Far below the $10,726 to $12,077 that the State knows it costs to educate a student in the Capistrano Unified School District; a suburban school district.

Capistrano Unified School District Per Pupil Funding 2007 - present

2007-08     $7,694
2008-09     $7,614
2009-10     $7,246
2010-11     $7,228
2011-12     $7,469
2012-13     $7,002
2013-14     $7,419
2014-15     $8,042
By 2021     $7,694 + Inflation or approximately $8,271

Source: CDE Cost per ADA CUSD is County Code 30 at: http://www.cde.ca.gov/ds/fd/ec/currentexpense.asp

The continued lack of adequate funding from the State has denied CUSD students the ability to obtain:

A.     Instruction in all state mandated core subjects that align with minimum mandated State Content Standards and Curriculum Frameworks: 

Since 2010, CUSD students have been denied an equal opportunity to receive instruction in Art, Music and Science that align with State mandated minimum Content Standards and Curriculum Frameworks. Those schools that cannot raise sufficient funds through fundraising and donations are denied Art, Music, or Science that align with state mandated minimum Content Standards and Curriculum Frameworks. See Count 16 Fundraising for Visual and Performing Arts Curriculum which is incorporated herein. See: Presentation to the Board "Fundraising for Core Educational Programs" January 27, 2016 BOT Meeting Agenda Item #5 Citizens Request Fundraising for Art & Music" and Board Audio 2:28:0 to 2:47:45 where it was discovered that the California Department of Education is representing to Districts that under "Local Control", instruction that aligns with California State Content Standards and Curriculum Frameworks- (subject content and instructional time) are now left to the discretion of the individual classroom teacher, principal and district. The Local Control Funding Formula Law as written, does not reflect an intention on the part of the legislature to make California State Content Standards and Curriculum Frameworks a "recommendation" rather than a "requirement". The CDE is re-writing State Law. 

Relying on fundraising and donations to provide state mandated minimum curriculum that aligns with state mandated Content Standards and Curriculum Frameworks creates wealth based inequities in the quality of education a student receives within the Capistrano Unified School District, and irrespective of the CDE's interpretation of the LCFF law, is a violation of the Equal Protection Clause of both the United States Constitution and the California Constitution as evidenced by the allegations asserted in Count 16 and incorporated herein.

B.     High quality staff

CUSD has a highly tenured senior staff that is at the top of the Step and Column Salary Schedule. Almost every teacher who is left in the District will be retiring in the next three years, The District will offer them an early retirement to save money, and new inexperienced teachers will replace them at 1/2 the cost (Retiring Teachers average salary schedule $98,000 per year- new teachers $48,000 per year). The new young and inexperienced teachers will face over crowded classrooms, in facilities that have not been maintained, with teacher to pupil ratios that average 36 pupils to one teacher. The money that is saved will not go towards restoring cut programs, maintenance of facilities or reducing class sizes, it will go to pay the increased cost of CalSTRS and CalPERS contributions that the State of California is passing down to school districts which will represent about 10% of CUSD's total budget by 2021. With 92% of the budget already allocated to employee salaries, pensions and benefits, over 100% of CUSD's budget will be going to employee compensation. There is no "Road to Recovery" for students unless taxpayers unless taxpayers vote to approve new revenue streams:

Vote to make Prop 30 taxes permanent

Vote to Approve School Facilities Bonds which are being offered by the State- and at the local level by individual school districts - county offices of education and community college districts. Taxpayers could potentially be funding school facilities through multiple bond measures.

The State has already increased the cap on local taxes from 2% to 3%.

Vote to approve allowing Counties, Cities and Local School Districts the right to raise personal income taxes to fund their local public schools.

The Peoples elected representatives in collusion with public employee unions conspired to create a state-wide "Road to Recovery" plan that was designed to protect employee salaries, pensions and benefits through the recession rather than protect the educational interests of students. The plan has been incorporated into every CUSD budget discussion since 2012, and the Capistrano Unified School District has followed that plan perfectly.

The lack of funding has resulting is staffing decisions that are designed to protect employee salary schedules, and are not in the educational, health or safety interest of students. There are many examples of this as documented in this complaint, but to illustrate the point:

Example:

In 2011 due to drastic budget cuts, CUSD laid off all but 16 Academic "Counselors" and replaced them with Academic "Advisors". An Academic "Counselor" is required to have equivalent to the completion of an earned Master of Arts or higher degree in psychology, counseling, or guidance and hold a valid California Pupil Personnel Services Credential authorizing service as a school counselor.  Academic "Advisors" are required to have 2 years of college level course work in education and a valid Driver License. The average compensation for a Certificated teacher is $110.000 The average compensation for a classified employee is $54,000. The District saved money by hiring less qualified staff, and knowingly and intentionally perpetrated a fraud upon the public by representing Academic "Advisors" as Academic "Counselors" on the SARC reports for individual school sites while accurately reporting the number of qualified Academic "Counselors" to the State. The result of this type of budget cutting decision resulted in a steady decline of academic performance of students across all demographics as evidenced by the data contained in LCAP Goal 3 Measurable Outcome #3 incorporated herein.

*Note: CUSD was able to hire 30 new Counselors in 2015-16 by restructuring ROP. 

Example:

Opportunity Assistants- April 22, 2015 Board of Trustees Meeting Agenda Item #5 RESOLUTION NO. 1415-42, CLASSIFIED LAYOFF NON-MANAGEMENT EMPLOYEES: A practice "Unique to Capistrano Unified School District" 

Board Audio at 2:26:00 through 2:42:00

On the surface this agenda item is about giving 60 day statutory notice to classified employees who's positions are being eliminated. In reality this agenda item exposes a lack of compliance with Ed Code. Ed Code requires that all students must be supervised in classrooms by certificated teachers. Students can be supervised by non-certificated employees in the yard, but in classrooms they must be supervised by certificated teachers. Unique to Capistrano Unified School District, students who are pulled from classrooms for disciplinary, or other reasons, are essentially being warehoused in a classroom under the supervision of a non-certificated employee who does not have the credentials to "instruct" students. Depending on how often a student is pulled from their regular class, some students may not be receiving adequate "instructional time".  In addition to disciplinary ejections, special education students who may be disruptive to classrooms with large number of students may also be pulled from classrooms depriving them of adequate instructional time. To bring CUSD practices in line with the law, these classified employees are being given a 60 day notice and the District is conducting a study to see how these services (which are needed at every school) can now be delivered in accordance with the law.

C.     Program expansion and variety.

During the great recession, the State of California in collusion with public employee unions, allowed Districts to use categorical funding for general fund purposes. It was at that time that CUSD began cutting programs to maintain maximum employee compensation. In the adoption of the 2012-13 Budget and corresponding employee contracts, CUSD swept $21, 295,960 to balance it's budget. See: June 11, 2012 BOT Meeting Agenda Item #2 Exhibit 2 at page 3. Despite the longest economic recovery in our nations history- many of these programs have not been restored to date. Currently CUSD schools that cannot afford to fundraise have no art, no music, and limited science. CUSD schools have limited honors classes which place our students at a great disadvantage when applying to college because they are unable to show rigor in their 9th and 10th grade course work and their GPA will never be as high as those students who attend schools with the funding to have broad program expansion. This limits resident students entrance into 4-year selective colleges (UC and CSU); and prevents students from gaining access to financial aid and scholarships, placing extreme financial hardship on taxpayers who are forced to pay more for college due to loss of scholarship opportunities and/or payment of out of state tuition.

D.     Beneficial teacher-pupil ratios and class sizes.

CUSD has the highest class sizes in the nation and in the State. Class Size reduction has been an LCAP priority since the very first LCAP in 2012-13; however despite allocating funding to reduce class size every year, class sizes are never reduced, and that money is spent on maintaining maximum employee compensation as evidenced by LCAP Data Goal 1 Measurable Outcome #3 incorporated herein. This data illustrates the ineffectiveness of the LCAP as a transparency and enforcement tool. The 2012-13 LCAP Annual Review turned into CDE clearly states that CUSD allocated $4,937,000 for class size reduction. The LCAP acceptance letter from CDE accepts the LCAP with the statement that $4,937 was spent to reduce class sizes and then acknowledges in its acceptance letter that class sizes have not been reduced. 

Under the LCFF there is no accountability of how school districts spend their money, and no recourse for parents or the public when the District fails to honor its promise to students and taxpayers.

* These numbers represent "average" class sizes.

** As of December 11, 2015 The Class Size Reduction program has been eliminated. Under "Local Control" a district and its bargaining units are free to negotiate any size class they wish. See LCFF Frequently asked questions K-3 Grade Span Adjustment

E.     Modern equipment and materials 

Parents are fundraising for Art- Music- Science- CSR - Instructional materials and supplies - instructional aids - librarians- counselors - nurses - employee compensation increases - teachers release time- and the list goes on. Over 92% of CUSD's budget goes to employee salaries, pensions and benefits. There is no funding budgeted for modern equipment and materials.

F.     Attend school in high-quality buildings. 

70% of CUSD schools were built 20 years ago

30% of CUSD school were built 40 years ago

Our oldest school was built in 1929

CUSD currently has $9.9 million in facilities funds but needs $84.1 million to bring facilities up to minimum standards. See: Community Committee on School Classroom and Campus Facilities. For more information see: Committed to Excellence. CUSD is currently trying to place an $884 million dollar bond on the November 2016 ballot. With potential state matching funds of $200 million, CUSD is asking for over $1.1 billion for facilities. 

*Note- in the Bond marketing materials CUSD is representing that... "employee compensation is over 80% of the budget"; when it fact, employee compensation in over 90% of the CUSD budget. This is an intentional misrepresentation of a material fact. The intentional misrepresentation of the facts by the District and it's paid consultant Government Financial Strategies perpetrates a fraud upon the Public. Source: 2015-16 July 1 Budget General Fund School District Standards and Review - 5. CRITERION: Salaries and Benefits  at page 177 of the board agenda which states employee salaries and benefits are 86.3% - 92.3% of CUSD's Budget and that average salaries & benefits have been 89-90% of the Districts budget since 2012-13 and are projected to remain so through 2017-18.

STUDYS SHOW THAT WHEN BUILDING CONDITIONS ARE WELL MAINTAINED STUDENT ACHIEVEMENT ON TESTS SCORES ARE 5-17% HIGHER THAN PEERS WHO RECEIVE INSTRUCTION IN SUB-STANDARD BUILDINGS

Capistrano Unified BOT Meeting May 27, 2016 Agenda Item #21 Exhibit 21 page 325 at page 328 Slide 4 of 10 referencing the study that lead to the Williams complaint legislation Do School Facilities Affect Academic Outcomes?  Listen to Board Audio at 2:30:20  (A study that lead to Williams legislation). "Goal is to optimize facilities for all students. Study shows that when building conditions are well maintained student achievement is 5-17% better than those students who attend classes in sub-standard facilities.  

Board Audio at 2:30:20

School Dude Tool has been purchased to prepare and communicate multi-year deferred maintenance plan for all sites. When the tool was implemented it showedthe following:

Board Audio at 2:35:03 2016 CUSD had 16,000 work orders for plumbing issues with 3 plumbers on staff. 

Board Audio at 2:35:39  In January 3000 open work orders 90 day turn around time

Board Audio at 2:35:49 2nd Quarter 2000 open work orders 60 day turn around

Board Audio at 2:36.11 4th quarter Goal is 500 open work orders 30 day turn around

Board Audio at 2:36:30 Comparison information CUSD vs Other Large Districts - majority of the work orders are coming from school sites for immediate repair- would prefer to be on preventative maintenance plan. Currently have 14,450 work orders less than 28% are completed in less than a week. The audio implies there are additional graphs and slides regarding this statistic but those additional slides are not included in the Board Agenda so the public has not access to these charts and graphs.

Board Audio at 2:43:30 Air conditioning Issues 

CUSD needs $12.5 million to put air conditioning in facilities that currently have no air.

CUSD has replaced 53 HVAC systems this year

The rest of the HVACs are past their lifespan (over 15 years) No funds and no staff to band-aid fix all these should they all go out at once. CUSD installed fans at Pallisades and Concordia but it causes power outages.

Board Audio at 2:45:50 Board Discussion of Aging Facilities and a Lack of Maintenance 

It is clear from this discussion facilities have not been adequately maintained for over 15 years. It is also clear that there has been no funding for preventative maintenance in CUSD since 2011-12 when the State allowed school districts to use categorical funding for general fund purposes (most of which went to employee compensation). CUSD in collaboration with its employee bargaining units, conspired behind closed doors to allow students to attend schools in facilities that were not properly maintained, and posed health and safety issues for students, so that deferred maintenance funds could be used for across the board employee compensation increases.

While CUSD lacks sufficient funding to provide a minimum education for its students, and allows it's students to attend class in sub-standard facilities; it found resources to give employees four consecutive years of across the board compensation increases since 2012-13, and was able to hire Government Financial Strategies, a consulting firm, to actively market a facilities bond to CUSD parents and taxpayers. A practice that the State Attorney General recently issued an opinion on stating that such a practice is a mis-use of public funds. CUSD students are are attending schools in overcrowded classrooms, with staff to pupil ratios that are not safe, in buildings that have not been maintained for over 15 years. 

FACILITIES FUNDING

It is the State's responsibility to fund facilities for schools.

The Public education system is the State of California's number one spending priority yet, in the State's 2016 5- year infrastructure plan, the State has chosen not to allocate a single penny to K-12  to K-12 facilities. The State wide plan for K-12 facilities under "Local Control" is to allow Counties- Cities and School Districts to fund facilities by passing local school facilities bonds. It is unconscionable that the State should keep tax revenue that should go to K-12 facilities, and spend that money on other projects (High Speed Rail) forcing taxpayers to raise new revenues to provide for clean, safe, warm and dry facilities. See: California 5-Year Infrastructure Program 2016 at page 50.

The People's elected representatives have unilaterally shifted the State's spending priorities from Public Education to other projects:

Transportation (High Speed Rail) $51 billion of the $55 billion in proposed infrastructure spending. See: California 5-Year Infrastructure Program 2016 at page 3.

COLLUSION BETWEEN THE PEOPLES ELECTED REPRESENTATIVES AND THE PUBLIC EMPLOYEES WHO PAID TO ELECT THEM

The People's elected representatives and the public employee unions that paid to elect them have conspired behind closed doors to enrich themselves at the expense of the people they have been elected and hired to serve. The State's view of "Local Control" is to keep all current taxes at the State level, but push all the increased costs (for example- increased costs of CalSTRS and CalPERS contributions and facilities maintenance and construction) down to the local level, and then give taxpayers the opportunity to to fund public education through increased local taxes and bonds, fundraising and donations.

Average Teacher Compensation (Salaries, Pensions and Benefits): 

2012-13 $ 95,673
2013-14 $105,340
2014-15 $108,392
2015-16 $110,633

 

ALLEGATIONS:

CUSD VIOLATED GOVERNMENT CODE SECTION 3547-3547.5 - PUBLIC DISCLOSURE LAWS - TRUSTEE FIDUCIARY DUTY

3.    The community has a high stake in our public education system. The negotiations by school employee groups such as the Capistrano Unified Education Association (CUEA) representing teachers, The California School Employees Association (CSEA) representing classified employees, the Teamsters and (CUMA) Unrepresented Employees (Management) greatly influence events in the classroom and have an impact on the overall cost of education. When local school boards and employee groups meet at the negotiating table, the decisions that are made are of great importance to the quality of education that will be provided for students. While negotiations are usually conducted in private meetings between representatives of the school district and its employee groups, the public must be provided with an opportunity to study the issues, evaluate their impact on the educational system, and have an opportunity to “express itself” to it's elected representatives; "Trustees", regarding the proposal at a meeting of the public school employer.

The Districts "DUTY" to “Disclose” takes on special importance during tough economic times when the economic interests of employee groups are at odds with the educational interests of students.

California Government Code Section 3547 requires the District to provide the public with a “reasonable time” to review tentative employee contracts after negotiations have taken place, and requires school districts to provide the Public with an opportunity to express itself to it's elected representatives (Trustees) about the agreements before a contract is entered into.
 
Disclosure has two parts:

• Disclosure of the terms of the employment contracts that are being negotiated, and
 
• Disclosure of how the contracts will affect the District’s Budget.

The reason for the law is very clear- it prevents the adults at the collective bargaining table from entering into contracts that unjustly enrich themselves at the expense of the students 

CALIFORNIA GOVERNMENT CODE SECTION 3547-3547.5

3547.  (a) All initial proposals of exclusive representatives and of public school employers, which relate to matters within the scope of representation, shall be presented at a public meeting of the public school employer and thereafter shall be public records. (b) Meeting and negotiating shall not take place on any proposal until a reasonable time has elapsed after the submission of the proposal to enable the public to become informed and the public has the opportunity to express itself regarding the proposal at a meeting of the public school employer. (c) After the public has had the opportunity to express itself, the public school employer shall, at a meeting which is open to the public, adopt its initial proposal. (d) New subjects of meeting and negotiating arising after the presentation of initial proposals shall be made public within 24 hours. If a vote is taken on such subject by the public school employer, the vote thereon by each member voting shall also be made public within 24 hours. (e) The board may adopt regulations for the purpose of implementing this section, which are consistent with the intent of the section; namely that the public be informed of the issues that are being negotiated upon and have full opportunity to express their views on the issues to the public school employer, and to know of the positions of their elected representatives
 
3547.5.  (a) Before a public school employer enters into a written agreement with an exclusive representative covering matters within the scope of representation, the major provisions of the agreement, including, but not limited to, the costs that would be incurred by the public school employer under the agreement for the current and subsequent fiscal years, shall be disclosed at a public meeting of the public school employer in a format established for this purpose by the Superintendent of Public Instruction. (b) The superintendent of the school district and chief business official shall certify in writing that the costs incurred by the school district under the agreement can be met by the district during the term of the agreement. This certification shall be prepared in a format similar to that of the reports required pursuant to Sections 42130 and 42131 of the Education Code and shall itemize any budget revision necessary to meet the costs of the agreement in each year of its term. (c) If a school district does not adopt all of the revisions to its budget needed in the current fiscal year to meet the costs of a collective bargaining agreement, the county superintendent of schools shall issue a qualified or negative certification for the district on the next interim report pursuant to Section 42131 of the Education Code.

Trustees are elected by the Public to represent the interests of the Taxpayers and Students. Trustees do not represent what is in the best interests of employees at the collective bargaining table. Employees are represented by their bargaining units.

In order for Trustees to fulfill their fiduciary duty to taxpayers and students, Trustees must consider the Public’s voice when negotiating employment contracts and adopting a budget. Trustees must provide parents and the public with an opportunity to study contract issues, evaluate their cost and impact on the educational system, and provide the public with an opportunity to be heard.

Public disclosure laws are intended to ensure that the "Public be informed of the issues that are being negotiated upon and have full opportunity to express their views on the issues to the public school employer, and to know of the positions of their elected representatives (Trustees)".

During tough economic times; when the interests of employee groups are at odds with those of the students, district finances and the collective bargaining process take on special importance. Decisions on how a school district spends money should not be negotiated behind closed doors.  When disclosure laws are complied with, students, interested parents and taxpayers have an opportunity to influence Trustees who are elected by the public, to represent the interests of students and taxpayers at the collective bargaining table. When disclosure laws are not complied with, what is left is a group of adults conspiring behind closed doors to maximize employee compensation at the expense of student services. Trustees have a legal fiduciary duty to represent the interests of students and taxpayers in all matters before the Board.

This complaint alleges that Defendants, the Capistrano Unified School District, it's Superintendent and district staff, it's employee bargaining units (CUEA, CSEA, Teamsters), CUMA, and CUSD Trustees; knowingly and intentionally negotiated behind closed doors to approve 2012-13 employment contracts and a corresponding budget that defendants knew were detrimental to students and would result in the unjust enrichment of CUSD employees at the expense of students. Defendants conspired behind closed doors to increase class sizes, cut programs, defer maintenance and cut instructional time in order to avoid a reduction in employee salary schedule. As a result of Defendants intentional mis-conduct, defendants have knowingly and intentionally interfered with the fundamental right that every student has to achieve equality of educational opportunity.

4.     The Orange County Department of Education, charged with the fiscal oversight of CUSD, was complicit in allowing CUSD to enter into employment contracts and adopt a 2012-13 budget that it knew, or should have known, would unjustly enrich employees at the expense of the quality of education that students would receive. 

Defendant, Orange County Department of education, charged with the oversight of the Districts fiscal solvency was complicit in allowing CUSD to enter into employment contracts and adopt a 2012- 13 budget that it new was detrimental to students. OCDE allowed CUSD to file qualified budgets even though the District could only show fiscal solvency for a single year, when the law requires school districts to show fiscal solvency for the current and subsequent two years. As a result of the intentional mis-conduct of the Orange County Department of Education and it's Board of Trustees, all students in the Capistrano Unified School District have been denied their fundamental right to achieve equality of educational opportunity.

5.     The result if a continual lack of sufficient funding has resulted in a notable decline in the academic performance of students across all demographics. 

The continual lack of adequate funding has resulted in a notable and measurable decline in the academic performance of students across all demographics as is evidenced by LCAP and historical academic performance data. Students attending CUSD schools are now being denied the ability to reach their academic potential which will have a lasting effect on their future ability to earn money and be an educated productive member of society and the political process. As a result, the number of students seeking other educational options within the District is rising dramatically. Our best and brightest students are choosing private schools, charter schools, and home schooling as alternatives. Charter School enrollment has gone from 285 in 2007-08 to 4,198 in 2014-15. There is now, a State - Union led collaborative mission to close Charter Schools and force the public's children to remain in failing public schools.

6.     The People's elected representatives and the public employees who fund their campaigns have conspired behind closed doors to craft laws that put the financial interests of public employees above the educational interests of students and the financial interests of taxpayers. Together, Defendants, the State Board of Education, the People's elected representatives and the state's public employee unions have conspired to create common messages to promote a "Road to Recovery for Education" that includes the adoption of Common Core State Standards, Local Control Funding Formula and the School Facilities Bond Act of 2016 forcing taxpayers to pay three times for a service that the State of California is already constitutionally obligated to pay for BEFORE it spends money on anything else. 

  1. The People pay personal income tax, property tax and sales tax to fund State revenues to FIRST fund a public education system that allows all California students to achieve equality of educational opportunity.
  2. Because of a lack of adequate funding, the People have been forced to fundraise to facilitate every students ability to achieve equality of educational opportunity. Those schools that cannot raise sufficient funding are denied minimum instruction in State mandated minimum curriculum that aligns with State Content Standards and Curriculum Frameworks in violation of equal protection laws of both the State and Federal Constitutions. 
  3. The State of California's 5-year infrastructure plan contains -0- funding for K-12 facilities. It is the State's intention to force local school districts to fund facilities through local facilities bonds so that tax revenues that should go to public education (the state's #1 spending priority) can be used to fund other projects like High Speed Rail, a new factory for the California Air Resources Board, Medical for people that are not legally entitled to be in this country or receive such benefits, and other projects that are not constitutionally mandated as a spending priority.

CUSD'S 2012-13 ADOPTED BUDGET AND 2012-13 EMPLOYMENT CONTRACTS WERE ENTERED INTO ILLEGALLY- CONTRACTS ENTERED INTO ILLEGALLY ARE NOT ENFORCEABLE 

 

7.     Employee compensation makes up 90+ % of CUSD's budget, and was projected to be over 100% of the District's budget until the District implemented an early retirement plan in March 2012.

8.      When adopting the 2012 - 13 budget and corresponding employment contracts, Defendants failed to comply with public disclosure laws, statutory and contractual deadlines, and board policies. Defendants CUSD; its bargaining units and Trustees, knowingly and intentionally mislead the Public about the 2012-13 employment contracts and adopted budget, and the effect that corresponding employment contracts and the adopted budget would have on the quality of education that student would receive. 

9.       At the June 27, 2012 Board of Trustees meeting majority Trustees violated Roberts Rules of Order and used parliamentary maneuvers to prevent minority Trustees from making public comments on the record about the 2012-13 budget and corresponding employee contracts. This was documented by a fiscal expert from Defendant Orange County Department of Education who was in attendance at the meeting. Defendant Orange County Department of Education did not intervene on behalf of students. Defendant OCDE was party to the entire negotiation process as evidenced by internal e-mails tracking CUSD's negotiations with it's employee bargaining units. Defendant OCDE was complicit in the conspiracy to enter into employment contracts and adopt a budget that it knew would unjustly enrich employees at the expense of the quality of education that students would receive under the proposed 2012-13 Budget and corresponding employment contracts..  

10.      As a result of a continual lack of funding from the State, and defendants intentional mis-conduct in negotiating contracts and adopting the corresponding budget there has been a notable decline in the academic performance of students across all demographics as evidenced by the LCAP and historical data. As a result of all defendants intentional misconduct, every student in the Capistrano Unified School District has been injured. Students have been deprived of their fundamental right to achieve equality of educational opportunity in violation of State and Federal Law.

11.     The Capistrano Unified School District's proposed 2012-13 Budget and corresponding employment contracts were based on the passage or failure of Proposition 30 Temporary Taxes to Fund Education. Guaranteed Local Public Safety Funding. Initiative Constitutional Amendment.

 

If Prop 30 failed CUSD would be forced to cut $51 million from the 2012-13 Budget.

 

If Prop 30 passed, CUSD would only have to cut $30.2 million from the 2012-13 Budget.

 

School Districts across the State went to extraordinary lengths to get Prop 30 passed in order to "save" schools and California's Public Education System. Every educational institution in the State actively; and illegally, "advocated" for the passage of Prop 30 while remaining virtually silent on a competing education funding initiative Proposition 38 Tax To fund Education and Early Childhood Programs Initiative Statute

 

Proposition 30 funding was earmarked for California's general fund, which meant that Prop 30 revenue could be used by the Governor and the State Legislature for "other" general fund expenditures. Prop 38 funding was earmarked specifically for "Education" and could only be used by the Legislature to fund schools, early care and education, and State Debt payments to schools (deferrals). Proposition 38 could not be used for general fund expenses.

 

Prop 30 Passed. CUSD implemented $30.2 million of the $51 million in identified cuts. Without public in-put CUSD used furlough days, class size increases, deferred maintenance and cuts to staff and programs to find $30 million in budget reductions. CUSD and it's bargaining units unilaterally (without public in-put) chose not to implement $19.8 million in identified salary schedule reductions. CUSD intentionally mis-lead the public about budget cuts that were identified, and budget cuts that were actually implemented. There was no "shared sacrifice" between employees and students as represented by Defendant CUSD and it's employee bargaining units. CUSD and its bargaining units conspired behind closed doors to protect employee salary schedules and to ensure that all bargaining units would share equally if cuts to employee salary schedules were required.

 

It is now settled that 80% of K- 12 Prop 30 money went to employee salaries, and to backfill unfunded pension and benefit liabilities. 

See:  http://trackprop30.ca.gov/K12State.aspx (60% of K-12 Prop 30 money went to salaries 20% went to benefits).

 

 

The adopted 2012-13 budget and corresponding employment contracts illegally protected employee compensation by forcing students to loose instructional time (5 furlough days), accept class size increases of 1.5 students across all grades, attend school in overcrowded classrooms in buildings that have not been maintained (deferred maintenance), and a $ 5.5 million reduction in staff (counselors, nurses, librarians) and programs.

 

PUBLIC DISCLOSURE LAWS WERE VIOLATED

 

12.     CUSD did not comply with Public Disclosure Laws.

 

Government Code Section 3547-3547.5 is designed to ensure that Trustees, who have a fiduciary duty to represent the interests of students and taxpayers in all matters before the Board, have an opportunity to hear and reflect upon public comment before making a decision. The statute's express intent is to have the District notify the public that a PUBLIC HEARING is going to be heard. That item is then placed on a Board Agenda as an "Information/Discussion" item. The Public is invited to come and express it's views about the item to Trustees so that public in-put can be considered before a vote is taken. Then at a following meeting (not the same meeting), the same item will be placed on the Board agenda as a "Discussion/Action" item at which time the Board takes a vote on the items. In violation of Government Code Section 3547-3547.5, CUSD often fails to give the Public a proper NOTICE OF PUBLIC HEARING. CUSD also fails to give Trustees the opportunity to think and reflect on public comment by placing the "Information/Discussion" item and the Discussion/Action item in the same agenda in violation of Government Code Section 3547-3547.5. After a matter of a Public Hearing is decided, the Board should publish an up-date to the Public. CUSD fails to provide the Public with Collective Bargaining up-dates during the collective bargaining process in violation of Government Code Section 3547-3547.5.   

 

 

CUSD 2012-13 Contract with CUEA

 NO NOTICE

NOTICE OF PUBLIC HEARING 

K-3 Class Size Penalty Waiver Request

CUSD wanted to seek a waiver to increase class sizes in grades K-3 from 30 to 31 students per teacher to 31 to 33 students per teacher.

 

CUSD did not give the public any NOTICE OF PUBLIC HEARING pursuant to Government Code Section 3547. The item was placed on the 2-29-12 Board Meeting Agenda as Item #5 PUBLIC HEARING K-3 Class Size Penalty Waiver as an Information/Discussion item. Immediately following Agenda Item #5 was Agenda Item #6 Kindergarten Through Grade 3 Class Size Penalty Waiver Request Discussion/Action page 11 Exhibit #6 

 NO NOTICE

NOTICE OF PUBLIC HEARING

CUSD 2012-13 Contract Re-opener Proposal to Association CUEA dated February 29, 2012 

 

 

CUSD did not give the public any NOTICE OF PUBLIC HEARING pursuant to Government Code Section 3547 that CUSD was making an initial offer to CUEA. The Item was placed on the 2-29-12 Board Agenda as Item #9 CUEA Contract Re-opener Proposal Information and Discussion page 21 Exhibit #9. The only notice the public would have is if they went to the District web site and read the entire Board Agenda.

02-29-12 

PUBLIC HEARING

02-29-12 BOT Meeting Agenda Item #5 - PUBLIC HEARING K-3 Class Size Penalty Waiver Request 

 

Information/Discussion

Board Audio at 23:34

No Public Comments during Public Hearing 

 

There was no Public Comment on this item.

02-29-12

02-29-12 BOT Meeting Agenda Item #6 page 11 Exhibit #6: K-3 Class Size Penalty Waiver Request

Increase Average Class Sizes: 

  • Kindergarten from 31 to 33 students per teacher 
  • Grade 1 -3 from 30 - 31 students per teacher

Discussion/Action Item

Board Audio at 23:38

at 25:13

Trustee Addonizio questions why this Waiver is retroactive back to 7-1-11?  CUSD response: To avoid penalties for the current year. State giving flexibility because of financial crisis.

Trustee Bryson Moves Item

Trustee Hatton Seconds Item 

Vote 6-1 

Yes: Trustees Alpay, Brick, Bryson, Hatton, Pritchard, Palazzo

No: Trustees Addonizio

PUBLIC HEARING Agenda Item #5 Information/Discussion was not properly noticed.  The Vote Discussion/Action on Agenda Item #6 were taken immediately following the PUBLIC HEARING in violation of Government Code Section 3547. 

02-29-12

02-29-12 BOT Meeting Agenda Item #9 page 21 Exhibit 9: CUSD 2012-13 Contract Re-opener Proposal to Association CUEA 

Successor Agreement

Article 1:Designation of Parties and Length of Agreement

Article 5: Hours

Article 8: Class Size

Article 11: Association Rights

Articles 13 and 14: Health and Welfare Benefits and Wages (and related appendancies)

Information/Discussion

Board Audio at 33:10

at 35:00 Trustee Bryson - we have already cut $100 million from the budget and are on track to cut an additional $50 million more. Sacrifice must be shared. Sacramento is not doing its job.

No other Board comments.

The terms of this agreement were so vague that the Public would have no real understanding of the effect the change in contract language would have on classroom instruction. As a result, the Public is not really in a position to comment on the proposal. For example- re: Class Size: CUSD proposal states "The District proposes to negotiate class size language applicable to grades K-3 and 4-12 to increase flexibility as necessary to address fiscal challenges". What the District really means was that it intended to increase class sizes by 2 students across all grades if necessary to balance its budget. "Increased flexibility" has no meaning to the general public. By seeking a waiver to increase class sizes by 2 students CUSD had an obligation to the public to say that under their opening proposal class sizes may increase by 2 students in grades K-3. That is a statement that the public would understand and could address in public comment.

03-12-12

03-12-12 BOT Meeting Agenda Item #4 page 159 Exhibit #4 MOU - Article 5.3.1 Kindergarten Teacher Instructional Time

Discussion/Action 

Board Audio at 1:15:45

MOU expires June 30, 2012 returning instructional minutes in Kindergarten from the current 303 minutes to 291 minutes. Cost of $179,000 is offset by the cost of penalties $98,000 in CSR Option II Revenue.

Motion by Trustee Hatton

2nd By Trustee Pritchard

Vote: 5 to 2

Yes: Trustees Alpay, Brick, Bryson, Hatton, Pritchard,

No: Trustees Palazzo and Addonizio

 

03-12-12

03-12-12 BOT Meeting Agenda Item #5 page 161 Exhibit #5 Vote to accept CUSD 2012-13 Contract Re-opener Proposal to Association CUEA

Discussion/Action

Board Audio at 1:18:48 

Vote to Approve CUSD's Contract Re-opener proposal to CUEA 

Motion by Trustee Alpay

2nd By Trustee Hatton

Vote: 7 to 0 to approve the proposal

Yes: Trustees Alpay, Brick, Bryson, Hatton, Pritchard, Palazzo and Addonizio

No: 

This was done correctly- the Information/Discussion on this Item was held at the last BOT meeting 2-29-12 and the vote is held at a following meeting 3-12-12

03-30-12

CUEA gives CUSD it's contract re-opener proposal dated March 30, 2012

 

CUSD did not give the Public Notice of receipt of the CUEA proposal until 26 days after it's receipt by CUSD in violation of Government Code Section 3457 - 3547.5. The Item was placed on the April 25th, 2012 BOT Meeting as Agenda Item #4 for Discussion/Action. There was no PUBLIC HEARING - the Public never an opportunity for the Public to have Information/Discussion which is a violation of Government Code Section 3547. The proposal should have been on the April 25, 2012 BOT meeting as an Information/Discussion item with the Discussion/Action item on the following meeting Agenda. CUSD skipped the Public Hearing on CUEA's opening proposal to CUSD in violation of Government Code Section 3547 - 3547.5.

CUEA Contract for the Period July 1, 2009 - June 30,2012

on page 46:

ARTICLE 12 - Negotiation Procedures

12.1 The District and the Association agree that they will meet and negotiate pursuant to the requirements of State law sufficiently in advance of the end of the term of this agreement so that there is sufficient time for a new agreement to be reached or for the resolution of an impasse. No later than April 1of the calendar year in which this agreement expires the parties shall submit their initial proposals to each other for a successor agreement or re-openers. The District shall give proper notice of such proposals at the first school board meeting following the submission of the proposals.

CUSD Proposal was placed on the 2-29-12 BOT Meeting Agenda as Item #9 Information/Discussion without proper notice to the public.

CUSD Proposal was approved on the 3-12-12 BOT Meeting Agenda as Item #5 Discussion/Action without proper notice to the public.

CUEA Initial Proposal dated 3-30-12 was not made public at the February 6, 2012 Special Board meeting rather CUSD waited till the April 25, 2012 BOT Meeting Agenda Item #4 to disclose CUEA's opener. The item was never offered for Information/Discussion so that the public could make comment. The Item went Directly to a Vote Discussion/Action in violation of Public Disclosure Laws and Article 12 of CUSD's contract with CUEA. If you listen to the Board Audio you will see that Trustees were confused by the vote and District Staff mislead Trustees as to what they were voting on. See comments below at 04-25-12.

04-05-12

NOTICE OF PUBLIC HEARING: K-Grade 3 Class Size Penalty Waiver April 25, 2012 BOT Meeting 

   

04-25-12

04-25-12 BOT Meeting Agenda Item #4 page 55 Exhibit 4 CUEA 2012-13 Contract Re-opener to CUSD dated March 30, 2012

Article 12 in the collective bargaining unit requires that parties submit their initial proposals no later than April 1st.

Article 5: Hours of Employment

Article 8: Class Size

Article 10: Leaves

Article 11: Association Rights

Miscellaneous: Rotate Site leadership positions (for example, department chair, leadership team, 6/5's)

It is CUEA's intent, in compliance Article 12 in the collective bargaining agreement as well as applicable state law, to meet and negotiate sufficiently in advance of the end of the current agreement in order for new agreement to be reached.

Discussion/Action 

Board Audio Part 2 at 3:05

Vote to Accept CUEA Proposal to CUSD 

Motion by Bryson 

2nd by Alpay

Vote: 7 to 0 to "accept" CUEA's  proposal

Yes: Trustees Alpay, Brick, Bryson, Hatton, Pritchard, Palazzo and Addonizio

No: 

This item was not for Information/Discussion as it should have been with the actual vote being taken at the following meeting.

at 3:49 Trustee Alpay asks for clarification -We are not approving the proposal are we? Where Staff responds "No you are just accepting the proposal". 

The Board was mis-lead by District Staff. This was a vote to "Approve" the proposal as is with no discussion or in-put.

 04-25-12

4-25-12 BOT Meeting Agenda Item #6 Page 59 Exhibit 6 Resolution No 1112-40, Resolution for Acceptance of Contract Amendment

Discussion/Action

Board Audio at 4:46

Vote to Amend Contract to reduce State Pre-school from 246 to 181 days

Motion by Bryson 

2nd by Alpay

Vote: 7 to 0 to accept CUEA's  proposal

Yes: Trustees Alpay, Brick, Bryson, Hatton, Pritchard, Palazzo and Addonizio

No: 

 

 

CONTRACT NEGOTIATIONS WITH CUEA CAN OFFICIALLY BEGINAS OF APRIL 25, 2012 

*NOTE: Contract negotiations are not suppose to begin until the opening proposals from CUSD and it's bargaining units have been properly noticed and approved. However, since CUSD pays part of the salary of the CUEA President to be released from their duties as a teacher to work in the District Offices, the Teachers Union through it's President actually works at the District Office as a Co-worker to District Staff. This gives the Union president the ability to actively advocate for union positions on a daily basis. These are not "arm-length" negotiations. This is 24-7 negotiations between friends and co-workers that exclude public in-put. Behind closed doors are ongoing and continual negotiations between friends and co-workers. Public in-put is limited to a 3 minute statement at a specially noticed BOT meeting.

04-25-12 

4-25-12 BOT Meeting Agenda Item #7 page 63 Exhibit 7 Request to Waive the Penalty for Class Size Increase.

Comment on the waiver:

The District would need to negotiate an increase in staffing ratio to increase class sizes district wide in grades K-3. Article 8 in CUEA contract addresses the staffing ratios (Article 8.3) and individual class size maximums (Article 8.5). The staffing ratio is 30.5:1 in Kindergarten and 31.5:1 in grades 1-3. Should an individual class in K exceed 32:1 and 33:1 in grades 1 -3 Article 8.5.1 provides one full -day release per month by a substitute. Class sizes are monitored closely and the class sizes are kept to a minimum.

Discussion/Action

Board Audio at 6:17

THIS ITEM WAS REMOVED

 

4-25-12

NOTICE OF PUBLIC HEARING 

5-8-13: Re-opening Proposal with CUEA

   

05-22-12

NOTICE OF PUBLIC HEARING

Adoption of the 2012-13 Tier III Use of Categorical Flexibility Funds at the June 11, 2012 BOT Meeting 

 

 

05-25-12 BARGAINING MEETING    
05-31-12 BARGAINING MEETING    
06-05-12 CUEA BARGAINING MEETING UPDATE TO IT'S MEMBERS

First Day of Bargaining 5-25-12

Budget Presentation and agreement to share cuts equally between all employee bargaining units.

CUSD Presentation: 

  • One Year Contract
  • Increase class size
  • suspension of class size overage language
  • furlough days
  • 1/2 year freeze on step and column 
  • salary decrease
  • suspension of second salary advancement window 
  • adjustment to K instructional time -
  • TK planning
  • March 1 opening date for negotiations in future years
  • increased contribution by CUEA for presidential release.

Association Presentation: 

  • Defined workday with penalties if exceeded
  • Changes to kindergarten instructional minutes; equalizing and decreasing K-5 duties;
  • ability to negotiate school calendar;
  • a change to elementary spring conferences for below benchmark students only;
  • establishment of a joint committee to look at the issues around combo classes;
  • an increase to personal necessity days;
  • an increase to CUEA paid release days;
  • incorporation into the contract of MOU's, and reviewing the possibility of postponing or eliminating nonessential duties or activities 

The conversations generated the need for additional data to be shared at the next bargaining session

2nd Day of Bargaining 5-31-12

CUSD Counter Proposal:

  • New kindergarten instructional minutes;
  • Establishment of a joint committee on combo class issues;
  • An increase to CUEA paid release days;
  • Incorporation of two MOU's into the body of the contract,
  • A one-year pilot program establishing elementary spring conferences for below benchmark students only.
  • The district also proposed for the 2012-13 school year five furlough days,
  • Step and column freeze from beginning of school year to January 1, 2013,
  • an increase to class size by two students.
  • In the event that the Brown tax initiative does not pass, the district proposed an additional eight furlough days and salary schedule decrease.

Association Counter Proposal:

  • CUEA offered compensation cuts of five furlough days in 2012-13 to be taken at the end of the school year;
  • An increase class size by 1.5,
  • A step and column freeze from the beginning of the school year until January 1, 2013.
  • In case the tax initiative does not pass, CUEA proposed to take an additional ten furlough days to be taken at the end of the year.

The two teams are scheduled to meet again on June 11, 2012.

  CUEA Update went out June 5, 2012 There was no update from CUSD to the Public.

 06-7-12

NOTICE OF PUBLIC HEARING:

2012-13 PROPOSED BUDGET ADOPTION

   

06-11-12

BARGAINING MEETING 

 

No Bargaining Up-date by either CUEA or CUSD 

06-11-12

PUBLIC HEARING

Adoption of the 2012-13 Tier III Use of Categorical Flexibility Funds June 11, 2012 BOT Meeting Agenda Item #1 Resolution No 1112-50, Adoption of the 2012-13 use of Categorical Flexibility Funds

 

Information/Discussion

Board Audio at 23:52

Public Comments:

Jim Reardon - CUSD is taking $21 million in Categorical funds to operate the District which is largely payroll. The on-going labor negotiations need to address the payroll expenditure.

 

06-11-12

Adoption of the 2012-13 Tier III Use of Categorical Flexibility Funds June 11, 2012 BOT Meeting Agenda Item #2 Resolution No 1112-50, Adoption of the 2012-13 use of Categorical Flexibility Funds

Senate Bill SBX3-4 gives flexibility

Education Code Section 42605

Assembly Bill 70 extended flexibility through 2014-15

Assembly (AB) 189 effective January 1, 2012

Exhibit page 2 page 2 shows the Categorical programs that can be eliminated to save $21,295,960 but does not show what is actually being eliminated. 

Discussion/Action 

Board Audio at 26:38 

at 28:56 Trustees Alpay - this just gives us flexibility actual cuts will be made at the budget

at 29:44 Trustee Addonozizo which cuts are reflected in your budget. Exhibit 2 shows existing funds but not swept funds. Addonizio cannot support the resolution without this information.

at 32:25 Trustee Hatton cannot approve this without knowing what is being cut. Confirms that this just gives flexibility does not identify what is being cut.

33:24 We need to have the Public Hearing show the detail before the Budget is adopted.

34:01 Trustee Palazzo ROP money $2,344,83 How much has been cut. 

35:30 Trustee Alpa we are not sweeping $21 million it is just flexibility.

36:28 Superintendent Farley - required by law to have this hearing before the Budget is adopted. No funds will be swept until budget adoption

Vote to Approve Resolution No 1112-50 to give CUSD flexibility to use Categorical funds to balance its budget through 2014-15

Motion by Alpay  

2nd by Hatton

Vote: 4 to 2 with Bryson absent

Yes: Trustees Alpay, Brick, Hatton, Pritchard

No: Trustee Addonizio, Palazzo

PUBLIC HEARING Agenda Item #1 Information/Discussion and Vote Agenda Item #2 Discussion/Action were taken simultaneously in violation of Government Code Section 3547.   

06-12-12

Tentative Agreement executed

 

Terms of Agreement were not made public by CUSD until the June 27, 2012 Board meeting agenda came out. 

6-26-12 

NOTICE OF PUBLIC HEARING - Request to Waive the Penalty for K-3 Class Size Increases, Fiscal Year 2012- 13 to be heard at the July 9, 2012 BOT Meeting

   

 NO NOTICE

NOTICE OF PUBLIC HEARING:

2012-13 Tentative Agreement with CUEA

 

No Notice was given. 

 NO NOTICE

PUBLIC HEARING

Recommendation of Tentative Agreement With CUEA for July 1, 2012 - June 30, 2013

 

No Agenda Item for Information/Discussion the item went straight to a vote,

06-27-12

06-27-12 BOT MEETING Agenda Item #1 page 1 Exhibit 1- Recommendation of Tentative Agreement With CUEA for July 1, 2012 - June 30, 2013

More than $150 million has been cut from CUSD Budget since 2008-09.

Future meetings to:

  • eliminating unessary paperwork
  • streamlining duties
  • retaining programs, activities and assessments that directly promote learning and teaching.

Article 5 Hours:

  • Develop one year pilot MOU to save money by suspending Section 8.5 to hold IEP's SST's, Leadership Team within the existing 8 hour day
  • Before October 12, 2012 revisit effective special education MOU terms to promote more consistent application of the MOU's across the District.
  • Amend 5.3.1 to reflect: Grade K: 292 minutes daily (reduced from 302
  • Amend 5.3.1 to reflect ACE days of 203 minutes daily - All K students will attend on the Early Bird Schedule 
  • Kindergarten teachers will receive priority to computer/library on ACE days
  • Minimum Day: 180 minutes
  • First Day of School: 73 minutes
  • Equalize staff by working on Master Duty Schedule
  • Add language to 5.10.5- Individual school sites can develop alternative schedules which do not fall on designated minimum day.
  • Add language to Article 5 - spring conferences will be limited to students who are underperforming
  • Add language to Article 5 -develop Pilot MOU for 2012-13

Article 8 Class Size

  • Form joint CUEA/CUSD committee on Combo Classes
  • MOU to Suspend Article 8.5 for 2012-13
  • MOU to increase class sizes in all grades by 1.5 students for 2012-13 (MOU will expire June 30, 2013)

Article 10 Leaves

  • Amend Article 10.3.1 to increase the number of days of accumulated sick days for each member from 7 to 10 (3 additional days)
  • Amend Article 10.3.3 to make 5 of the 10 sick days to be used for any reason.

Article 14 Wages

  • From 2011-12 there was a negotiated: 1.2% Salary Schedule decrease and 3 non-instructional furlough days which will continue for 2012-13 subject to current agreement 14.1.1
  • For 2012-13 there will be an additional 5 Instructional Furlough Days to be calendared at the end of the school year.
  • For 2012-13 there is a 1/2 year freeze in Step & Column.

If Prop 30 fails:

  • An additional 10 Instructional Furlough days (total 15 Instructional and 3 non-instructional)
  • An Additional 1.5% salary schedule decrease.
  • If additional cuts are needed beyond the $51 million in identified cuts, instructional days will be restored and cuts will be made through salary schedule decreases.
  • Parties agree to re-negotiate after the passage or failure of Prop 30
  • If Restorations are possible, parties agree to restore instructional days and restore corresponding salaries.

Delete MOU Article 5 Hours: Kindergarten Hours

Delete MOU Article 5 Hours: Kindergarten Duty Overlap

Delete MOU Article 5 Back to School Night/Open House Minimum Days

Accept CUSD proposal to establish a joint committee to explore best practices of selection of candidates for extra assignments.

PUBLIC DISCLOSURE OF COLLECTIVE BARGAINING CUEA: Average Total Compensation Cost per employee is $95,673

Discussion/Action 

Board Meeting Audio at 17:35

All three Bargaining Units came together - to collaborate to identify $51 million in cuts. While each agreement is individual- they come together as one to show that it is the State that has failed students with deferrals and changes in policy. 

THIS WAS A DEAL THAT WAS NEGOTIATED BEHIND CLOSED DOORS WITH NO REAL PUBLIC IN-PUT IN VIOLATION OF PUBLIC DISCLOSURE LAWS.

Public Comments:

at 22:50 Jennifer Beall - 15 furlough days if Prop 30 does not pass. No real salary cut unless it is re-negotiated after the Nov election. No one represented the students at the collective bargaining unit.Students loose with this agreement.

at 26:39 Hatton moves item

at 27:00 John Alpay uses parlimentary meanuvers to close debate without allowing Trustee Addonizio to make public comment. Trustee Addonizio asks for a point of order. 

Vote 4 to 3 to close debate

The Board does not allow Trustee Addonizio to speak they close debate.

at 28:00 Vote on motion- there is obvious confusion on the part of Trustees as to what is going on.

Vote to Approve 2012-13 Contract with CUEA: Approved 4 to 3

Yes: Trustees Alpay, Brick, Hatton and Pritchard

No: Trustees Addonizio, Bryson and Palazzo

The use of parliamentary maneuvers to block minority Trustees from public comment was documented by a memo from an OCDE Fiscal Expert to OCDE that attended the meeting.

"Capo's TA's and budget all passed, mostly on 4-3 votes. So they are in good shape, fiscally, for now. There was clearly tension among the Board members, but I didn't have a chance to talk with Clark to find out what might be the cause. The majority members blocked comments byy the minority members using parliamentary  maneuvers. It wasn't pretty."

Document is attached to this complaint.

 

CUSD represented that it held over 25 budget presentations to employee organization leaders, staff members parents and the public. A public records request identified that all but 3 of these meeting were closed (not open to the public) or were community forms with the Superintendent not with all Trustees present and do not meet Public Disclosure requirements as a meeting with Trustees the peoples elected representative

Salary Step Freeze from July 1, 2012 - December 31, 2012 means that employees would still receive a 1/2 year Step and Column salary increase

5 New Instructional Furlough Days with the possibility of 15 new instructional furlough days if Prop 30 failed (students were already scheduled to have 3 instructional furlough days so the total would be 8 if Prop 30 passed and 18 if Prop 30 failed).

Class Size Increase of 1.5 students across all grades. The only changes to class size made public to date were discussions of K - Grade 3.

CUSD claims that Presentation of this agreement on a Board agenda as a Discussion/Action Item provides the public a "reasonable time" to review the tentative agreement under Government Code Section 3547(d) therefore meets Public Disclosure requirements.

The Contract saves the District $30.2 million for 2012-13 and address CUSD's obligation to cut an additional $20.8 million in the event Prop 30 does not pass.

06-27-12

PUBLIC HEARING

June 27, 2012 BOT Meeting Agenda Item #4 PUBLIC HEARING: 2012-13 Budget Adoption 

 

Information/Discussion

Board Audio at 

Four Public Comments:

  • Jim Reardon 
  • Bill Perkins
  • Linda Defonce 
  • Julie Collier
 

06-27-12

June 27, 2012 BOT Meeting Agenda Item #5 PUBLIC HEARING: 2012-13 Budget Adoption 

District Presentation: 

Instability at the State level makes it difficult for school districts.

  • State is allowing 15 furlough days each year instead of 15 furlough days over 2 years.
  • Instability in State Budgets makes cash flow and budgeting difficult:
  • The value of Prop 30 revenue will be deferred. 
  • Deferrals have increased -
  • $1.4 billion to $9.3 billion 
  • In CUSD the need to borrow has gone from $15 - $18 million in 2995 to $75 million today.
  • Trigger Cuts increased by $16 per ADA to $457 per ADA
  • The State is pushing borrowing costs down to Districts to cover budget shortfalls at the State Level
  • State One-Time money is gone

The State and County Office of Education have allowed Districts to file one year budgets in violation of CA law which requires 3 Districts to show budget is balanced for the current and subsequent two years. 

Board Meeting Audio at 53:00

No red flag will show on Standards and Criteria if the conduct of the State or OCDE has caused the issue- not required to file a qualified budget and only need to show fiscal solvency for the current year.

Discussion/Action 

Board Audio at 42:35

Vote to Close Debate on the 12-13 Budget: Approved 4 to 3

Yes: Trustees Alpay, Brick, Hatton and Pritchard

No: Trustees Addonizio, Bryson and Palazzo

Discussion/Action 
Vote to Approve 12-13 Budget: Approved 4 to 3

Yes: Trustees Alpay, Brick, Hatton and Pritchard

No: Trustees Addonizio, Bryson and Palazzo

PUBLIC HEARING and Vote taken simultaneously. There was no chance for Trustees to discuss and reflect upon public comment as required by Government Code Section 3547

At the July 9, 2012 BOT Meeting 

Board Audio at 7:55

Trustee Palazzo comments about the appalling behavior of Trustees Pritchard and Alpay at the June 27, 2012 BOT Meeting would not allow debate on 2012-13 Employee contracts and 2012-13 Budget. Shame on such an abuse of power.

Board Audio at 9:47

Trustee Addonizio suppression of public discussion is unacceptable and un-American.

FIRST POINT:

at 10:42

Why is CUSD including COLA 3.24% in revenue calculation when OCDE advised not using COLA. CUSD one of 18 Districts that applied for June Deferral of waiver to meet payroll. Borrowed $100 million with deferrals of $85 million how much more can we borrow and should we borrow?

at 11:32 

January 22 Auditor stated CUSD is overspending. There is a reduction in revenue with no corresponding reduction in spending.

at 11:56 

How does the budget address class size reduction and what programs are going to be lost?

at 12:14

How are athletic programs affected?

at 12:20

How is the Board fulfilling its obligation to educate students by eliminating 15 days of school? Is there so little value placed on the actual instruction of students. the future of our country, that the Board chooses to reduce expenditures by reducing education.

SECOND POINT

at 12:40

Suppression of speech and abuse of authority. Violation of Roberts Rules of Order- to protect the minority. No debate was allowed. 

At the July 25, 2012 2012-13 Budget Discussion page 1 Exhibit 1

Board Audio at 11::43

Response to Trustee Addonizio's questions at the last Board meeting. The answers provided are sufficient 

06/27/12

PRESS RELEASE - Budget Balanced with Employee Concessions- Solutions to $51 Million Deficit Found Through Negotiations

 

This Press Release went out at the time of meeting and was already written as the vote was being taken and pushed through by Majority Trustees. 

07-09-12

PUBLIC HEARING 

07-09-12 BOT Meeting agenda Item #1 Request to Waive the Penalty for Class Size Increases

Information/Discussion

Board Audio at 18:36

No Public Comment Hearing Closed at 19:03

07-09-12

07-09-12 BOT Meeting agenda Item #2 Request to Waive the Penalty for Class Size Increases

State encourages Districts to use waivers to negotiate budget crisis.

Discussion/Action 

Board Audio at 19:03

at 20:07

Trustee Addonizio clarifies that the new CUEA contract only increases class size by 1.5 students so why is the waive way above that.

On page 3 of 3 "The District is requesting the class size limit be waived and allow the overall class size average in kindergarten to increase from 31 to 33 and in grades 1-3 from 30 to 34. The District is also requesting that individual class size maximums be increased from 33 in kindergarten to 35 and from 32 in grades 1-3 to 35. If the waiver is denied the District faces $1.5million in penalties."

District Response - Flexibility to reduce the number of Combo classes.

at 21:22

Trustee Hatton confirms that 24 other school districts are seeking the same waiver. Combo classes are difficult to teach.

at 22:14

Trustee Bryson how many districts seeking waivers are in Orange County. Class sizes are to large- for years constituents do not want increased class sizes.

at 25:55

Superintendent Farley - unprecedented budget cuts result in unfortunate impacts. One year agreements with employee groups.

at 27:11

Trustee Addonizio - concerns about class size increases - parents don't care why - what is the District doing to mitigate damage to student learning.

at 27:51

Trustee Palazzo what happened with February 29, 2012 waiver requests?

CUSD pulled waiver for K and 1-3 only received waiver for 4 and up.

at 28:35 

Trustee Hatten - CUSD had no other options.

Motion to request waiver- Trustee Pritchard

Second Trustee Brick

Vote 4 to 3 to approve request for waiver.

Yes: Trustees Alpay, Brick, Hatton and Pritchard

No: Trustees Addonizio, Bryson and Palazzo

PUBLIC HEARING and Vote taken simultaneously. There was no chance for Trustees to discuss and reflect upon public comment

07-09-12

07-09-12 BOT Meeting agenda Item #3 page 5 Exhibit 3 Proposed 2012-13 Revised School Calendar

Calendar adjusted to align with contract with CUEA

5 furlough days at the end of the school year

Adjusts student free days so that all K-12 students end school on the same day. 

 

Discussion/Action

Board Audio at 29:57

at 30:46

Trustee Pallazzo - conference days in spring for under performing students only- why does CUSD still have a week of minimum days?

at 33:11 

Trustee Hatton all kids need conferences not just underperforming students.

Motion to request waiver- Trustee Pritchard

Second Trustee Hatton

Vote 5 to 2 to approve request for waiver.

Yes: Trustees Alpay, Brick, Hatton, Bryson and Pritchard

No: Trustees Addonizio, and Palazzo

 

07-09-12 

07-09-12 BOT Meeting agenda Item #4 Proposed Parent/Teacher Conferences for 2012-13

At June 27, 2012 BOT Meeting Trustees agreed to reconsider moving 2012 elementary fall conferences from the week of Dec 17th to the week of November 5th to save ADA.

Discussion/Action 

Board Audio at 34:16

at 35:33

Motion to move parent/teacher conferences- Trustee Brick

Second Trustee Bryson

at 35:40

Trustee Addonizzio we had a Conference Committee of over 20 members make decisions everyone except the head of the teachers union was in agreement about the December 17th - 21st. If you are going to make a change then reconvene committee. 

at 37.03

Trustee Palazzo asked if the Committee was notified about tonights agenda item. CUSD responded that they notified CUEA but not the Committee.

at 37:50

Trustee Bryson- the Committee members should be following CUSD's Board Agendas.

at 38:42

Trustee Hatton agrees with Trustee Bryson but feels we should honor the Committee decision.

at 40:00 

Trustee Bryson- under ed code committee decision is only a recommendation, the Board can make changes if they wish.

at 40.24

Superintendent Farley - the committees recommendation was not well received by staff. We need to respect a committees work but this was a bad call.

at 41:20

Trustee Addonozzio do we have to re-do the Calender that we just approved. Farley says unilateral change is fine.

Motion to request waiver- Trustee Brick

Second Trustee Bryson

Vote 4 to 3 to approve changing the conference date to the week of November 5th and unilaterally changing the Calendar that was adopted in agenda Item #3 (previous agenda item)

Yes: Trustees Alpay, Brick, Bryson and Pritchard

No: Trustees Addonizio, Palazzo, Hatton

 

 

CUSD's MULTI-PRONGED APPROACH TO BALANCING THE BUDGET UNFAIRLY PROTECTS EMPLOYEE COMPENSATION AT THE EXPENSE OF EVERYTHING ELSE. 

 

13.     CUSD uses a "Multi-pronged approach" to balancing its budget. This approach assumes that cuts start with unilateral cuts to non-negotiated items and then only looks to negotiated cuts from employee groups if needed. This is a fundamentally flawed approach to addressing CUSD's budget shortfalls, and is intentionally designed to protect employee salary schedules. Everything, ("unilateral reductions" and "negotiated concessions") should be on the table together. To force unilateral cuts first, then back into negotiated concessions as a last resort, results in a disproportionate amount of cuts to everything except employee salary schedules.

 

2012-2013 $51 MILLION IN IDENTIFIED CUTS:

 

Unilateral- Non-Negotiated Reductions = $11 million

 

Management (CUMA): $1.5 million

Classified (CSEA): $3.5 million

Certificated (CUEA): $3.5 million

Redirect Categorical Funding: $1.1 million

Other area of savings: $1.4 million

 

Negotiated Employee Concessions: $39.7 million in identified cuts

 

Savings from Class Size increase: = $8.2 million (2 students all grades)

 

Increase Class Size by 1 all grades saves $4.2 million

Increase Class Size by 1.5 all grades $6.4 million

Increase Class Size by 2 all grades saves $8.2 million

 

Savings from Freezing Salary Schedule: = $2.7 million

 

Management (CUMA) $162,796 mid-year Jan 2013

Classified (CSEA) $932,554 full-year

Certificated (CUEA) $1,432,144 mid-year Jan 2013

Teamsters $207,044 full-year

 

*Note: CUMA (Management) and CUEA (Teachers) only took a 1/2 year freeze in Step & Column meaning they did receive a 1/2 year increase in Step & Column (an increase)

 

Savings from 8 Furlough Days all employees = $9 million

 

Management (CUMA): $100,059 per day

Classified (CSEA): $338,361 per day

Certificated (CUEA): $1,191,788 per day

Teamsters: $43,415 X 8 per day

 

Furlough Days from 2011-2012 contract + 2012-2013 contract

 

Management (CUMA) 6 current + 2 = Total 8 Furlough Days

Classified (CSEA) 0 current + 8 = Total 8 Furlough Days

Certificated (CUEA) 3 current + 5 = Total 8 Furlough Days

Teamsters 4 current + 4 = Total 8 Furlough Days

 

*Note that despite separate representation/negotiations by employee groups- all furlough days ended with a total of 8 - hence evidence that all groups were negotiating together to evidence "shared sacrifice" and "collaboration".

 

Savings from Salary Rollback = $19.8 million 

 

Savings from each 1% in Salary Rollback

 

Management (CUMA) Each 1% = $ 194,030

Classified (CSEA) Each 1% = $ 589,227

Certificated (CUEA) Each 1% = $2,031,912

Teamsters Each 1% = $ 68,832

 

Total Identified Cuts: $51 million

 

When Prop 30 passed CUSD only needed to implement $30 million of the $51 million in identified cuts. CUSD unilaterally chose not to implement the $19.8 million in identified Salary Rollbacks- preserving employee salary schedules from reductions. This was not disclosed to parents and the public until after the fact. There was no public in-put on how the $30 million in cuts were to be made. The District represented to parents and the public that the District balanced it's budget with $51 million in employee concessions. The reality is that the budget was balanced on the backs of students in order to shield employees from the $19.8 million in salary schedule rollbacks.

 

CUSD INTENTIONALLY MISLEAD THE PUBLIC ABOUT HOW THE BUDGET WAS BALANCED

 

14.     During the June 27, 2012 Board meeting the District released the following Press Release regarding the budget and adopted contracts which indicated that employees had taken $51 million in cuts to get a balanced budget.

Source: http://capousd.ca.schoolloop.com/news/view?id=1338041182074

 

Of Note- This press release was sent out at the time of the meeting- so it was written before votes on the record were actually taken. 

 

News

Budget Balanced with Employee Concessions

Solutions to $51 Million Deficit Found Through Negotiations

 

            The Capistrano Unified School District (CUSD) Board of Trustees on Wednesday night approved a budget for the 2012-2013 school year that reduces spending by as much as $51 million, 75 percent of which will come directly from employee paychecks.

            The remaining portion of the general fund shortfall is being covered by layoffs, program changes, and utilizing a portion of funds earmarked for specific programs and services. Since the 2007-2008 school year, the District has cut approximately $150 million from its general fund budget.

            “Our employees and students have again sacrificed in order to cover the inadequate funding California’s schools receive,” Board President Dr. Gary Pritchard said. “This state is the eighth largest economy in the world, but ranks third from the bottom in per student funding in this country. To ask our students to accept fewer days in the classroom and our highly qualified teachers to take another pay cut is inexcusable. Thankfully, we have a community that works hand-in-hand with our teachers to ensure our students have an extraordinary educational experience. This Board and this administration have been empowered by this community to offer innovative and rigorous academic opportunities despite the fiscal challenges we face.”

            In 2007-2008, CUSD received $5,783 per student. If the Governor’s tax proposal fails, that number will drop to $4,770 per student, which is lower than the amount received in 2003-2004. In the upcoming school year, the District anticipates spending $331.2 million, down from $382.5 million in the current school year if the Governor's tax proposal does not pass.

            “Cuts of this magnitude will fundamentally change any organization, but especially one whose success relies so heavily on people,” Superintendent Joe Farley said. “We are lucky that we have a highly effective and dedicated group of teachers and a community that will not accept a substandard academic experience for its children. We will continue to find innovative ways to prepare our students for success in college or the workplace and keep our focus on classroom instruction.”

            The agreements each outlined a definite plan for additional spending reductions if the Governor’s proposed tax initiative fails or if mid-year cuts are implemented. In this worst-case scenario, the District faced a $51 million budget hole.

            The key ingredient to solving this year’s budget deficit are the agreements with the employee unions that rely on a multi-pronged approach that includes salary reductions, furlough days, class size increases, and layoffs.

            The agreement with the Capistrano Unified Education Association (CUEA), which represents about 2,155 teachers and other certificated employees including counselors, nurses and psychologists, contains approximately $30.2 million in savings. These employees have agreed to a pay decrease of six percent, which includes a 1.2 percent salary reduction, three non-instructional furlough days and corresponding pay cut (1.62 percent), five instructional furlough days and corresponding pay cut (2.7 percent), and a delay in salary schedule advancement which equates to a .5 percent payroll savings for the District. In the worst-case scenario, CUEA members have agreed to reduce their salaries another 6.9 percent by taking an additional 10 instructional furlough days with corresponding salary reductions (5.4 percent) and an additional 1.5 percent pay cut.

            “No one likes the choices we are forced to make to ensure that our children receive a quality education,” CUEA President Vicki Soderberg said. “I am glad that we were able to find solutions to this predicament. We have an agreement in place that ensures the District meets its fiscal obligations for the next school year and continues to retain programs and activities that promote teaching and learning.”

              The District’s classified workers, about 1,298 people, who are represented by the California School Employees Association (CSEA) Chapter 224, will soon vote on the pact Trustees approved on Wednesday night. That agreement results in $7.9 million in savings from CSEA employees taking eight furlough days (five instructional, three non-instructional) and the corresponding salary decrease, and postponing any automatic salary increases until July 1, 2013. In the worst-case scenario, CSEA members could face an additional 10 instructional furlough days with corresponding pay cuts of about 5 percent and a 1.6 percent salary reduction.

             “There are no good choices in this situation,” CSEA Chapter 224 president Ronda Walen said. “Everyone loses when you have to cut so much out of an organization, but we will continue to work hard to ensure that this District and its students remain among the best in the state and the nation.”

            Some 108 transportation workers, represented by Teamsters Local 952, agreed to $540,000 in concessions. Teamsters will take five furlough days in 2012-2013. If the tax proposal fails, transportation workers will freeze scheduled raises for half a year and take an additional nine instructional furlough days.

            Terms for unrepresented management employees—principals, District administrators, and classified managers—are expected to be announced in July.

            The CUEA agreement includes a 1.5 student increase in class size ratios for the 2012-2013 school year, which will save the District $6.3 million. In addition, previously negotiated limits will help reduce the amount the District will spend on health benefits by 6.6 percent.

            The agreements include from five to 15 instructional furlough days, which could reduce the number of school days to 165, down from 180. Under proposed state law, school districts can reduce the number of instructional days to 160.

            Copies of the approved budget and each employment agreement can be found on the District website, www.capousd.org, under the June 27, 2012, Board Agenda.

Audience: Homepage

Posted by: Marcus Walton                                                                                                                                                                                 Published:6/27/1

 

* Of Note: A review of Ed Code from 2010-11 through 2015-16 shows that there was a lot of collaboration between the State and Unions to carve out exceptions to laws to shield public employees from financial harm during the economic downturn. One example from the Press- Release above. Pensions do not vest when the school year drops below 165 days of school. An exception was carved out so that pensions would vest even if the school year dropped to 160 days. All of these special exceptions expired in 2015 at which point public employee salaries, pensions and benefits were restored to all time highs. Under the State wide plan- student recovery would start in 2015 and not reach 2007-08 levels until 2021, and only if taxpayers agreed to make Prop 30 taxes permanent, voted to approve school facilities bonds, agreed to allow Cities, Counties and School Districts the ability to charge new and increased "local" taxes. The State wide planned protected employee compensation at the expense of student learning during the great recession.

 

CUSD ACTIVELY AND AGGRESSIVELY ADVOCATED FOR THE PASSAGE OF PROP 30 WHILE REMAINING SILENT ABOUT THE EFFECTS OF PROP 38 (A COMPETING TAX MEASURE FOR SCHOOL FUNDING) IN VIOLATION OF THE LAW

 

15.      In the adoption of the 2012-13 Budget and and corresponding employment contracts, CUSD framed every communication with the Public in a manner that constituted a threat to the People... namely that if the Public failed to pass Prop 30, students would be faced with $51 million in budget cuts and would have 15 new furlough days (3 old + 15 new = 18 total)." CUSD represented that the District was being forced to cut $51 million from it's 2012-13 budget. The Press release that CUSD sent to the public when it adopted its 2012-13 budget represented that the 2012-13 budget was balanced with $51 million in employee concessions. Prop 30 passed, and in fact, the budget was balanced on the backs of students in the form of increased class sizes, cuts to instructional time (furlough days), program cuts and deferred maintenance. The $19.8 million salary reductions represented to the Public were NOT implemented. Employees actually received step and column salary increases and health and welfare benefit increases before CUSD decided what cuts to make to balance the Districts 2012-13 budget.

 

Under California law, including Education Code Section 7054, school districts are strictly prohibited from engaging in political advocacy using public resources.

 

7054. (a) No school district or community college district funds, services, supplies, or equipment shall be used for the purpose of urging the support or defeat of any ballot measure or candidate, including, but not limited to, any candidate for election to the governing board of the district.
(b) Nothing in this section shall prohibit the use of any of the public resources described in subdivision (a) to provide information to the public about the possible effects of any bond issue or other ballot measure if both of the following conditions are met:
(1) The informational activities are otherwise authorized by the Constitution or laws of this state.
(2) The information provided constitutes a fair and impartial presentation of relevant facts to aid the electorate in reaching an informed judgment regarding the bond issue or ballot measure.
(c) A violation of this section shall be a misdemeanor or felony punishable by imprisonment in a county jail not exceeding one year or by a fine not exceeding one thousand dollars ($1,000), or by both, or imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for 16 months, or two or three years.

 

When school districts threaten parents with 18 furlough days and increased class sizes if they fail to vote for Prop 30, while remaining silent on a competing measure Prop 38, the District is "advocating" not "informing" the public which, is illegal under Education Code Section 7054. As a result of CUSD's intentional mis-conduct students and tax payers were harmed. It is now clear that the passage of Prop 30 benefited public employees and not students. While per pupil funding remains capped at 2007-08 levels + inflation not to reached until 2021, it has now been established that 80% of Prop 30 money went to public employee salaries, pensions and benefits. The funds promised to students were not spent to reduce class sizes, restore programs, maintain facilities or eliminate furlough days. The Public was lied to by the Governor, our elected representatives, and educational institutions across the State.

 

PROP-30 PASSED - CUSD UNILATERALLY - WITHOUT PUBLIC IN-PUT CHOSE NOT TO IMPLEMENT THE $19.8 MILLION IS SALARY SCHEDULE ROLE BACKS

 

16.    When Prop 30 passed, CUSD unilaterally (without any public in-put) chose not to implement the $19.8 million in identified salary rollbacks.

 

 

MAJORITY TRUSTEES BREACHED THEIR FIDUCIARY DUTY TO STUDENTS AND TAXPAYERS

 

17.    Trustees are elected by the public to represent the interests of students and taxpayers in all matters before the Board. Majority Trustees (elected with employee Union support) would not even allow minority Trustees to make comment on the record about the 2012-13 employment contracts or the adoption of the 2012-13 budget. The Majority Board of Trustee members breached their fiduciary duty to the Public by using parliamentary maneuvers to block comments of Minority Trustees. The Board audio speaks for itself. Trustees violated their fiduciary duty to students and the public, resulting in substantial harm to students. The harm that has been done to students cannot be repaired as each student has a single opportunity to pass through each grade. Failure to master instructional material as a result of overcrowded classrooms, overworked teachers, rundown facilities and less instructional time then their peers prevents all CUSD students from achieving their academic potential and places them at great disadvantage to their peers in other districts.

 

Board Audio from the June 27, 2012

Board Meeting http://cusd.capousd.org/cusdweb/boardaudio/6-27-12/06-27-12RegBdMtg.mp3

Board Meeting Agenda Items #1- 5

A.  Agenda Item #1 Teachers Contract for May 12, 2012- June 30,  2013 at 17 minutes and 31 seconds:                                      
  • 17 minutes 50 seconds The District makes note of the fact that the three employee groups worked together since January to find a way to cut $51 million from the budget. The District brought all the parties together (except the public) to get this deal.  
  • 19 minutes 50 seconds  CUSD has cut $150 million dollars from its budget
  • 20 minutes 17 seconds   The Orange County Department of Education commended CUSD for finding the full $51 million in cuts. 
  • 20 minutes 50 seconds  The Board, Management and Employees worked together to solve the $51 million dollar reductions No more us vs them ... just a "WE"  Where was the Public In-Put?
  • 21 minutes 33 seconds  The Contract increased class sizes by 1.5 students across all grades
  • 21 minutes 43 seconds   1/2 Year Salary schedule freeze means that teachers still received a 1/2 year salary schedule increase
  • 21 minutes 50 seconds   5 Instructional Furlough days
  • 21 minutes 55 seconds   If Prop 30 fails: 10 additional Instructional Furlough Days and a 1.5% Salary Schedule Rollback for a Total of 15 Instructional Furlough Days
  • 22 minutes 20 seconds  The State in collusion with the California Teachers Union changed many laws which helped the Unions preserve employee compensation during the great recession - rules that hurt students such as allowing the number of instructional days to drop below 165 and still allow Teacher pensions to vest. 
  • 22 minutes 37 seconds   Total CUEA Concessions are $30.2 million 
  • 23 minutes 01 seconds    Speaker Jennifer Beall- What happened to the 3 Pronged Approach - Fair for Everyone -This is not fair- Kids loose 1 month of school and no salary cuts? Are students first? People are out of work- people have no health care yet teachers have cadillac health care plans and are getting compensation increases. We want more teachers lower class sizes. Kindergarten 30+ kids per class so teachers can have a raise?
  • 26 minutes 40 seconds   Trustee Hatton moves to approve the agreement.
  • 26 minutes 48 seconds  Trustee Brick seconds the motion 

Majority Trustees Prevented Minority Trustees from making Public Comments about the Budget and Employment Contracts. 

  • 26 minutes 50 seconds  Trustees are asked to vote - but Trustee Addonizio asks to make a comment.
  • 27 minutes 00 seconds  Trustee Addonizzio has a comment - Trustee Alpay moves to close debate without allowing Trustee Addonizzio to speak. 
  • 27 minutes 25 seconds  Trustee Hatton seconds Trustee Alpays motion
  • 27 minutes 28 seconds  Trustee Addonizzio requests a point of order
  • 27 minutes 53 seconds  Trustees vote to close debate
  • 28 minutes 10 seconds Trustees vote 4 to 3 to accept the CUEA contract: Addonizzio, Bryson and Pallazo vote no, Alpay, Pritchard, Hatton, Brick vote Yes the contract is accepted. 
  • 29 minutes 11 seconds Trustee Bryson asks if that was the actual vote on the item? She is a no.

(b)  2012-13 Employment Contract CUEA

 

In negotiating the 2012-13 employment contract CUSD and CUEA violated California Government Code Section 3547(d)... "New subjects of meeting and negotiating after presentation of the initial proposals shall be made public within 24 hours" and Board Policy 4143.1(a) (4).

 

CUSD and CUEA executed a tentative agreement on June 12, 2012 that was not made public until June 27, 2012 when the Board was to vote on the agreement. The initial proposals were so vague, and in such general terms that the public was intentionally excluded from knowing and understanding the terms that were being negotiated as well as the costs associated with the agreement and its effect upon students which is also a violation of California Government Code Section 3547.5 (a).

 

Initial Proposal of CUSD to CUEA for 2012-13 dated February 29, 2012 Information/Discussion 

Made Public at the February 29, 2012 BOT Meeting Agenda Item #9

Adopted at the March 12, 2012 BOT Meeting agenda Item #5

 

MOU June 1, 2001- June 30, 2012 re: Kindergarten Instructional Classroom Time -Cost to CUSD $179,000 

Adopted at the March 12, 2012 BOT Meeting Agenda Item #4

 

CUEA Initial Proposal to CUSD for 2012-13 dated March 30, 2012

Made Public April 25, 2012 at BOT Meeting Agenda Item #4

 

The Tentative Agreement Between CUSD and CUEA for the period July 1, 2012 - June 30, 2013 dated June 12, 2012 was not made public until the June 27, 2012 at BOT Meeting Agenda Item #1 (15 days after execution) Majority Trustees used parliamentary maneuvers to block Minority Trustees from making public comments on the record about the 2012-13 Budget Adoption and corresponding employment contracts, violating Roberts Rules of Orders. 

 

The contract:

 

15 Furlough Days (5 days if Prop 30 passes - 15 days if Prop 30 fails)

1/2 year salary schedule step freeze (CUEA received a 1/2 year salary schedule increase)

Class size reductions of 1.5 students across all grades

The 10 additional Furlough Days and 1.5% Salary will only be implemented if Prop 30 Fails

 

The executed contract unjustly enriched employees at the expense of students. 

 

The contract was entered into illegally; in violation of State Law, and is therefore not enforceable. 

 
B. Agenda Item #2 CSEA Contract for July 1, 2012- June 30,  2013 at 29 minutes and 31 seconds:  
  • 3 year contract
  • Furlough Days 3 instructional  3 non-instructional
  • Full year freeze salary schedule advancement
  • If Prop 30 fails: 10 additional Instructional Furlough Days and a 1.6% Salary Schedule Rollback for a Total of 15 Furlough Days  
  • Total CSEA Concessions are $7.9 million
  • 30 minutes 51 seconds   Trustee Hatton moves to approve the agreement
  • 31 minutes 00 seconds  Trustee Alpay seconds the motion
  • 31 minutes 20 seconds  Trustees vote 4 to 3 to accept the CSEA contract: Addonizzio, Bryson and Pallazo vote no, Alpay, Pritchard, Hatton, Brick vote Yes the contract is accepted. 

2012-13 Employment Contract with CSEA:
 
The previous contract between CUSD and CSEA was adopted on September 28, 2010,  a 2- year settlement agreement for the period July 1, 2010 - June 30, 2012.
 
Initial Proposal of CUSD to CSEA for 2012-13 dated February 29, 2012 Information/Discussion
Made Public at the February 29, 2012 BOT Meeting agenda Item #10
 
Initial Proposal of CUSD to CSEA for 2012-13 dated March 12, 2012 Discussion/Action 
Adopted at the March 12, 2012 BOT Meeting Agenda Item #6
 
CSEA Initial Proposal to CUSD dated March 12, 2012
Made Public at the March 12, 2012 BOT Meeting Agenda Item #6
 
CSEA Initial Proposal to CUSD dated April 19, 2012
Made Public at the April 25, 2012 BOT Meeting Agenda Item #5
 
MOU re: Negotiated Language Regarding Impact of Layoff
Adopted May 14, 2012 BOT Meeting Agenda Item #3
 
The Tentative Agreement dated June 21, 2012 for the period July 1, 2012 - June 30, 2013 was not made public until the June 27, 2012 BOT Meeting Agenda Item #2 (6 days after execution)
 
The Contract:
 
1 year Schedule Step Freeze
18 Furlough Days representing a 1.6% Salary reduction
10 furlough days/ 1.6% Salary reduction will be returned if Prop 30 passes

 
 
C.  Agenda Item #3 Teamsters Local 952 Contract for July 1, 2012- June 30,  2013 31 minutes and 42 seconds:  
  • 1 new Furlough Day in additional to 4 they already have
  • If Prop 30 fails: 9 additional Furlough Days 1/2 year salary freeze
  • Total Teamsters $540,000
  • 32 minutes 33 seconds   Trustee Hatton moves to approve the agreement
  • 32 minutes 49 seconds  Trustee Pritchard seconds the motion
  • 33 minutes 1 seconds Trustee Bryson says she has not voted  
  • 33 minutes 29 seconds  Trustees vote 7 to 0 to accept the Teamsters contract

2012-13 Employment Contract with Defendant Teamsters:

The previous contract was adopted on June 29, 2010 the CUSD, a 3-year settlement agreement with Teamsters for the period of July 1, 2009 - June 30, 2012

Initial Proposal of CUSD to Teamsters for the period July 1, 2012- June 30, 2013 dated February 29, 2012 

Made Public at the February 29, 2012 BOT Meeting Agenda Item #11

Initial Proposal of CUSD to Teamsters for the period July 1, 2012 - June 30, 2013 dated March 12, 2012 

Adopted at the March, 2012 BOT Meeting Agenda Item #7

Teamsters Initial Proposal to CUSD for the period July 1, 2012 - June 30, 2013 dated May 15, 2012

Made Public at May 23, 2012 BOT Meeting Agenda Item #3

The Tentative Agreement for the period July 1, 2012 - June 30, 2012 dated June 19, 2012 was made public and adopted at the June 27, 2012 BOT Meeting Agenda Item #3 

Contract:

1/2 year Salary Schedule Step Freeze

10 Furlough Days

If Prop 30 fails, the the 1/2 year Step Freeze and 9 of the 10 furlough days will be implemented. 

 
D. Agenda Item #4 Public Hearing 2012 - 13 Budget Adoption at 33 minutes and 46 seconds: 
 
  • 34 minutes 18 seconds: Speaker Jim Reardon SJC Resident - No programatic reform just an all cuts budget. Substitute teachers 2 to 3 days per month. Why are you a Trustee? 2 year budget predicts deeper cuts next year - you need to address programatic reform.
  • 36 minutes 45 seconds: Bill Perkins - people suffering pay cuts up to 30%. 3 paragraphs regarding fiscal insolvency. Directed to Trustee Alpay- 37 minutes 57 seconds Stop acting like children up here. Allow people to speak. President Pritchard should not have allowed this - It looks like a back door deal. What do single parents doe with their kids for 3 weeks. Fix the problem and respect each other
  • 39 minutes 19 seconds: Linda Defonce Parents Advocate League - Put students first. Do not use furlough days to balance the budget.
  • 40 minutes 20 seconds: Julie Collier Parents Advocate League - Class sizes increase every year- teachers on strike - reduced counselors and assistant principals - lack of facilities maintenance- negative effects of seniority based lay offs. Parents have done their part- through fundraising and volunteering and paying their taxes. Leaving 8% of the budget to educate students is not enough. 
 
E.  Agenda Item #5 2012 - 13 Budget Adoption at 42 minutes and 12 seconds:  
 
  • 43 minutes and 09 seconds:  Presentation by Clark Hampton:
  • 43 minutes 35 seconds: Background on State Budget- The State will allow Districts to take up to 15 furlough days in each year to balance their budgets rather than 15 furlough days over two years. (30 days total instead of 15 days)
  • 43 minutes 57 seconds: Prop 30 money for schools is to be deferred.
  • 44 minutes 02 seconds: Deferrals- the State withholds money from Districts forcing Districts to borrow money and pay interests costs. This passes the cost of interest down to the District rather than have the State borrow money and pay interest on the debt- another cost for School Districts. 
  • 44 minutes 02 seconds: $1.4 billion in deferrals 2002-03 with deferrals at $ 9.3 billion in 2011-12. The State is pushing borrowing costs on to schools to cover budget short falls at the State level. What was once $13 - $18 million in CUSD borrowing is now $75 million in borrowing without having to show financial solvency for the current and subsequent two years.
  • 44 minutes 27 seconds: Trigger cuts were $41 per pupil are now $457 per pupil.
  • 53 Minutes 42 Seconds: The State and County Offices of Education waived the requirements of AB 1200 and allowed Districts to enter into one year contracts and approve one year budgets even though State law requires Districts to show fiscal solvency for the current and subsequent two years.
  • 54 minutes 42 seconds   Trustee Bryson expresses concerns about the impact of the budget on students. Furlough days bad for students. More instructional time key to achievement.
  • 56 minutes 59 seconds  Trustee Alpay - all employees are taking a pay cut under this budget.
  • 57 minutes 47 seconds Trustee Alpay moves to reduce Trustee pay by the same percentage as teachers.
  • 58 minutes 58 seconds Trustee Alpay moves to pass the budget with the reduce Trustee pay as an amendment
  • 59 minutes 00 seconds  Superintendent Farley clarifies the motion
  • 59 minutes 39 seconds  Trustee Pritchard seconds the motion
  • 59 minutes 41 seconds  Trustee Palazzo States that her light is on and that she has the right to speak. Questions re: Budget re: 2013-14  part of the budget (2013-14 and 2014-15 subsequent years) Does 1.2% salary reduction terminated. Health Cap ongoing. Some items ongoing some will end 2013. CSEA contract goes to 2015, CUEA contract expires June 2013. Salary rollbacks will not be included in 2013-14 budget. NOTE: The 1.2% salary schedule reduction is from the 210 teachers strike and is on-going unless re-negotaited.
  • 1 Hour 4 minutes 07 seconds  Trustee Pritchard asks if there is any indication from the Orange County Board of Education that they would reject the proposed budget.
  • 1 Hour 4 minutes 07 seconds   Trustee Addonizio's light was on and Trustee Pritchard called on her but was interrupted by Trustee Alpay who made a motion to close debate. Trustee Addonizzio was not permitted to speak. 
  • 1 Hour 5 minutes 40 seconds  Trustees vote adopt the budget 4 to 3 Addonizzio, Bryson and Pallazo vote no, Alpay, Pritchard, Hatton, Brick vote Yes Budget is adopted.
Attached is an internal e-mail from the Orange County Department of Education that documents that the Majority Board members did not allow minority Board members to speak about the Budget. The fiscal expert assigned to CUSD by the Orange County Department of Education made note of the Boards conduct in an e-mail to the OCDE stating:  
 
“… The majority members blocked comments by the minority members using parliamentary maneuvers. It wasn’t pretty.”
 
 
 
 
As the board audio shows, the 2012-13 Adopted Budget and Employee Contracts were negotiated behind closed doors and were orchestrated by the Defendants CUSD, CUSD Majority Trustees, CUEA, CSEA, Teamsters, CUMA, OCDE and OCDE Board of Trustees and the Conductor was the State of California (Defendants the Governor and the State Legislators and the California Department of Education and the State's Public Employee Unions) 
 
SUPPORTING DOCUMENTATION

2012-13 Adopted Budget: 

March 6, 2012 Superintendent Public Forum

This was a "Superintendent" Forum- Trustees were not present, and therefore this forum does not fulfill Public Disclosure requirements which require the Public to have an opportunity to express themselves to Trustees, their elected representatives.

2011-12 Second Interim Budget Report and Revenue/Expenses Increases/Decreases

Adopted March 12, 2012 BOT Meeting Agenda Item #1

2011-12 Up-dated Financial Statements - Third Interim Report 

Adopted May 23, 2012 BOT Meeting Agenda Item #1

June 7, 2012 Budget Forum Presentation

This was a "Superintendent" Forum - Trustees were not present, and therefore this forum does not fulfill Public Disclosure requirements which require the Public to have an opportunity to express themselves to Trustees, their elected representatives. 

PUBLIC HEARING: Resolution No. 1112-50 Adoption of the 2012-13 Use of Categorical Flexibility Funds

Adopted June 11, 2012 BOT Meeting Agenda Item #1

Senate Bill 4 allowed School Districts to use Categorical Program funds for General fund purposes for 2008-09 through 2012-13. Senate Bill 70 extended that flexibility through 2014-15. 

Resolution No 1112-50 Adoption of the 2012-13 Use of Categorical Flexibility Funds

Adopted June 11, 2012 BOT Meeting Agenda Item #2

CUSD identified $21 million in funds.

2012-13 Fiscal Year Budget Up-date Information/Discussion

Presented June 11, 2012 BOT Meeting Agenda Item #7 

The 2012-13 ADA is $5,244.31 compared to $5,244.08 in 2011-12. 

If Prop 30 does not pass Per Pupil funding will drop to $4,803.31.

Class sizes:

Class sizes in K and Grades 1 - 4 will be staffed per Article 8.3 of the Current Contract with CUEA (2009- 2012). Staffing in Grades 1 - 3 will differ with the current contract due to restrictions outlined in Ed Code section 41376 and 41378. For grades 1 - 3, these restrictions limit the maximum size of individual classes at 32:1, and the district wide average at 30:1. 

Expenditure Assumptions:

COLA: -0-

Salaries:

Step & Column Salary Increase

CUEA 1.5%

CSEA 2.0%

CUMA 1.5%

Teamsters 2.0%

Furlough Days: 2012-13

CUEA 2011-12 3 days 2012-13 3 days

CSEA 2011-12 1.5 - 3 days depending on months worked 2012-13  2012-13 -0- days no salary change

CUMA 2011-12 6 days 2012-13 -0-  days (a 3.7 Increase in compensation) 

Teamsters 2011-12 4 days 2012-13 4 days no salary change 

Resolution No. 112-49 Authorization of Temporary Inter-fund Transfers

Adopted June 11, 2012 BOT Meeting Agenda Item #8

PUBLIC HEARING - 2012-13 Budget Adoption BOT Meeting June 27, 2012 Agenda Item #4

2012-13 Budget Adoption BOT Meeting June 27, 2012 Agenda Item #5

CUSD stated that it complied with Public Disclosure laws because it held over 26 meetings with the Public regarding the 2012-13 Proposed Budget and corresponding employment contracts. A Public Records Request showed that those meetings did not meet Public Disclosure Requirements because they were not meetings that were Noticed as "open to the Public" and were not meetings where Trustees were present so that the Public was given an opportunity to express itself to Trustees (their elected representatives). Private Meetings between the Superintendent and it's employee groups do not qualify as meetings with the Public for Public Disclosure Purposes.

Of the 26 meetings referenced in the Public Records Request that were Open to the Public for disclosure purposes were: 

January 25, 2012 Board of Trustees Meeting - Open Session

February 13, 2012 Board of Trustees Meeting - Open Session

February 29, 2012 Board of Trustees Meeting - Open Session

April 25, 2012 Board of Trustees Meeting - Open Session

May 23, 2012 Board of Trustees Meeting - Open Session

The remaining meetings were closed to the Public.

Trustees were not present at the forums.

 
Capistrano Unified School District Budget Assumptions 2012-13
 
 
 
 
 
(f)  2012-13 Employment Contract with CUMA
 
Employment Contract Interim Executive Director Fiscal Services was made public and adopted at the May 9, 2012 BOT Meeting agenda Item #1   

 

18.     The conduct of the Defendants Board of Trustees, District Staff, the Superintendent and CUSD's public employee unions in negotiating the 2012-13 Budget and employment contracts was unconscionable; and as a matter of law violated California Government Code Sections 3547 - 3547.5, Education Code Sections 42130 and 42131 and Board Policy 4143.1(a) - 4243.1. The 2012-13 employment contracts were entered into illegally. Contracts entered into illegally are not enforceable.

 

 

19.    The conduct of Defendant Orange County Department of Education was unconscionable. The Orange County Department of Education is responsible for administering and enforcing laws related to education. The Fiscal expert assigned to the Capistrano Unified School District to oversee the financial stability of the District reported the misconduct of the Board, knew the financial condition of the district, knew the status of labor negotiations and intentionally looked the other way while CUSD and it's employee unions conspired behind closed doors to enrich themselves at the expense of students. 

 

20.   The conduct of Defendant Orange County Department of Education Board of Trustees was unconscionable. The Orange County Department of Education Board of Trustees are responsible for maintaining an awareness of the operations and financial conditions of the school districts in the county. The Fiscal expert assigned to the Capistrano Unified School District to oversee the financial stability of the District reported the misconduct of the Board, knew the financial condition of the district, knew the status of labor negotiations and intentionally looked the other way while CUSD and it's employee unions conspired behind closed doors to enrich employees at the expense of students. Source: http://www.ocde.us/Board/Pages/About-the-Board.aspx 

 

21.    The conspiracy to protect employee compensation at the expense of educational opportunity for students goes all the way to the Governor, the State Legislature and the California Department of Education who worked together since 2008 to "craft common messages and advice to school districts on assumptions for budget and interim reports", so that public employee compensation would be protected through the great recession even if defendants knew those policies would result in substantial harm to students.

 

Source: January 26, 2009 Letter from the Orange County Department of Education to Assistant Superintendents, Business Services Directors, Business Services ROC/Ps on the February 9, 2009 BOT Meeting Agenda Item #19 Funding Cuts from the State Exhibit "F" pages 239 - 243

 

 

State revenue growth shows that the fiscal crisis placed upon school Districts was the direct and intentional fault of State Government Policy that was designed to protect State Workers compensation even if that would result in a direct and negative impact on the quality of educational opportunity that students would receive. In 2007-08 State General Fund Revenues were $103 billion - the State was made whole in 2014-15 where State General Fund Revenues were $114 billion. Further- Total State Revenues have grown steadily since 2007-08 from $194 billion to $262 billion. The State knowingly and intentionally chose not to fund education (the State's #1 Constitutionally mandated spending priority) so that revenue could be spent on new programs and entitlements that are not constitutionally mandated. The State knowingly and Intentionally denied students sufficient revenue to restore instructional time, restore programs, reduce class sizes, and fix facilities.

 

State General Fund Revenues 2007-08 to the present show that revenues are at all time highs.

 

2007-08 $103 billion (LCFF freezes K-12 funding at 2007-08 by the year 2021)

2008-09 $91 

2009-10 $87 

2010-11 $91 

2011-12 $86 

2012-13 $96

2013-14 $100 

2014-15 $114

2015-16 $117 

2016-17 $125

 

Source: Chart "B" State of California Historical Data Budget Expenditures 

 

Total State Revenues 2007-08 to the present are at all time highs.

 

2007-08 $194 billion (LCFF freezes K-12 funding at 2007-08 by the year 2021)

2008-09 $195 

2009-10 $206

2010-11 $215 

2011-12 $199 

2012-13 $211

2013-14 $215 

2014-15 $249

2015-16 $271

2016-17 $262

 

Source: Chart "B" State of California Historical Data Budget Expenditures  

 

 

Despite record high revenues, the State refused and continues to refuse to up-hold its Constitutional obligation to adequately fund K-12 Public education so that every student receives sufficient funding to achieve equality of educational opportunity as defined by the Courts to be:  

 

"opportunity to obtain high quality staff, program expansion and variety, beneficial teacher pupil ratios and class sizes, modern equipment and materials, and high quality buildings."

 

Defendants, California's Governor and the State's legislators have shifted state spending priorities away from Public Education (the State's number 1 Constitutionally mandated spending priority) without a vote of the people.

 

The State's new education funding law "LCFF" freezes spending on it's #1 Constitutionally mandated spending priority (Public Education) at 2007-08 levels + inflation, and is not even promising to fund 2007-08 levels until the year 2021. Full funding by 2021 is not guaranteed, but is dependent on the following:

 

Taxpayers voting to make Prop 30 taxes permanent,

 

Taxpayers voting to approve a $889 million dollar local facilities bond,

 

Taxpayers voting to allow local Cities, Counties and School Districts to raise new local tax revenues,

 

Continued reliance on fundraising and donations to fund core educational programs

 

If the State sees another economic downturn, there is no guarantee that districts will see full funding at 2007-08 levels + inflation.

 

The State then uses "surplus" revenues to fund other programs and entitlements that are not Constitutionally mandated. 

 

If the Governor and the State Legislature would like to change the spending priorities of the People, then it must be done by a vote of the people through a Constitutional Amendment. To withhold sufficient funding to provide every student in California with equality of educational opportunity, and then use "surplus" funds for other programs and entitlements that are not constitutionally mandated is a violation of Article XVI §8 of the California Constitution.

 

"from all state revenues there shall FIRST be set apart the monies to be applied by the State for support of the public school system..." Cal. Const. art. XVI, §8 (Emphasis added)

 

The State of California has made the unilateral decision to deprive every student in the Capistrano Unified School District of their fundamental right to achieve equality of educational opportunity so that the State can use money that students are entitled to to create new programs and entitlements that are not constitutionally mandated. 

The Governor and the State Legislature are intentionally underfunding K-12 public education so that "surplus" tax revenues can be spent on new programs and entitlements that are not constitutionally mandated. If the Governor and the State would like to change the State's spending priorities, they must do so with a Constitutional Amendment. California's new LCFF law, as currently written (with a base grant of $6,500 per pupil, and limiting increases in per pupil funding to 2007-08 levels + inflation), does not provide sufficient funding to provide any student with a equal opportunity to achieve a quality education. 

As an example: The State's 5-year $55 billion dollar Infrastructure Plan does not contain a single penny for K-12 facilities. But, the plan allocates $51 billion to Transportation aka "High Speed Rail". 

 

Source:  http://www.ebudget.ca.gov/2016-Infrastructure-Plan.pdf at page 3. K-12 is at page 50. Education spending is limited to University of California, Community Colleges, State Special Schools and Hastings School of Law.

The State's new education funding law is unconstitutional as it violates Article XVI §8 of the California Constitution and the Equal Protection Clauses of both the US Constitution and the California Constitution. 

THE STATE OF CALIFORNIA IN COLLUSION WITH THE PUBLIC EMPLOYEE UNIONS HAVE CREATED A PROTECTED CLASS OF PEOPLE WHO ARE NOT SUBJECT TO THE SAME RULE OF LAW AS THE PEOPLE, IN VIOLATION OF EQUAL PROTECTION LAWS.   

22.      The average teachers salary in the State of California (excluding pensions and benefits) is nearly $70,000 while the median household income in the State of California is $61,094 ($9,000 below what a single teacher - not a "household" makes in a year). The power of the Public employee unions over the Governor and State Legislature to single out public employee union members for special treatment is a violation of the Equal Protection laws of both the United States Constitution as well as the State Constitution. The California Government has become hostile and oppressive to taxpayers which are forced to pay more and more for what is less and less in services. Taxpayers have become financial slaves to the State Government, and the public employee unions who pay to elect them. The continual increase in tax burden to support a specially chosen few; at the expense of many, violates equal protection laws.

The People have no recourse from a hostile and oppressive State Government that uses it's Public Education System to raise revenue and redistribute wealth rather than educate students. 

The State Attorney General who has an obligation to: 

Enforce and apply all laws fairly and impartially.

Ensure justice, safety, and liberty for everyone (not a chosen few)

Encourage economic prosperity, equal opportunity and tolerance.

Safeguard California's human, natural, and financial resources for this and future generations. 

has failed to uphold her responsibility to the People; and has in fact, used tax payer funds to defend Union positions in Court Cases that have come down on the side of protecting students rights. California has today, a California Teachers Union that is so powerful that even our Courts have been plagued by judicial rulings that favor teachers over students with absurd rulings that ignore Constitutional law and 44 years of case law defining the rights of students within the State of California. The latest example is the decision in Campaign for Quality Education v. California and it's campion case Robles-Wong v. California where the California Appeals Court (A 3 judge panel) ruled that there is no minimum education quality guaranteed by the State Constitution.

Source: http://www.cde.ca.gov/fg/fr/sa/cefavgsalaries.asp 

Source: http://quickfacts.census.gov/qfd/states/06000.html

In addition to growing taxes, under "Local Control", the State expects parents and taxpayers to tax themselves at the County, City and District level to pay for services (K-12 Public Education and Facilities) that the State is already Constitutionally mandated to provide. Districts are being forced to pay the increased CalSTRS and CalPERS contribution rates which will represent over 10% of CUSD's total budget by 2021. A 10% STRS and PERS contribution rate combined with employee compensation rate of 90+ percent means that over 100% of CUSD's budget will be spent on employee compensation. This will mean that the District will be forced to borrow money for ALL other expenses. 

Because the State State has provided -0- dollars for K-12 Facilities in it's 5-year facilities plans, Districts will be forced to get bonds passed in order to build new facilities or maintain existing facilities. CUSD is trying to get an $889 million facilities bond placed on the November 2016 Ballot because deferred maintenance funds were used to pay employee compensation during the great recession. Taxpayers should not be forced to raise new funding in the form of school facilities bonds while the State chooses to allocate $51 billion of a $55 billion facilities funding budget to Transportation aka "High Speed Rail". 

The Continued lack of adequate funding from the State has forced Districts to rely on increased illegal fees and fundraising to provide core educational services. Taxpayers are in effect paying for education that the State is mandated to fund, four times: through taxes, fundraising, fees, and bonds. Because of this corruption, the California Public Education System is failing our students. The continued lack of adequate funding has resulted in a notable decline in the academic performance of students across all demographics in CUSD as evidenced by the LCAP and historical data. Plaintiff incorporates "Local Control Accountability Plan" and corresponding data in this complaint.

CUSD, IT'S EMPLOYEE GROUPS, AND MAJORITY TRUSTEES CONSPIRED BEHIND CLOSED DOORS TO EXECUTE EMPLOYMENT CONTRACTS AND ADOPT A 2012-13 BUDGET THAT IT KNEW UNJUSTLY ENRICHED EMPLOYEES AT THE EXPENSE OF TAXPAYERS AND STUDENTS IN VIOLATION OF GOVERNMENT CODE SECTIONS 3547 and 3547.5, EDUCATION CODE SECTIONS 42130 and 42131 AND BOARD POLICIES 4143.1(a) - 4243.1.  

23.           Defendant CUSD, it's employee groups and Majority Trustees conspired behind closed doors to execute employment contracts and adopt a 2012-13 Budget that unjustly enriched employees at the expense of students, and did so in violation of Government Code Sections 3547 and 3547.5, Education Code Sections 42130 and 42131 and Board Policy 4143.1(a) - 4243.1. The 2012-13 employment contracts were entered into illegally and are therefore not enforceable. As a result of these illegal contracts, students and taxpayers have been damaged in an amount to be determined by the Court.

 

It should be noted that the Mediator recommended a 3.7% Salary schedule reduction. Only 1.2% was actually implemented. 2.5% not taken represents $6,724,932.35 stolen from students per year from 2012-13 to the present (5 years) = $33,624,661. Unfunded pension liabilities illegally increased under these contracts should not be the responsibility of the taxpayer to fund into perpetuity- funding of that burden should be shifted to the Public employee unions who were unjustly enriched as a result of illegal contracts. 

 

Savings from each 1% in Salary Rollback = $2,689,972.94
 
Management (CUMA) Each 1% = $ 194,030
Classified (CSEA) Each 1% = $ 589,227
Certificated (CUEA) Each 1% = $2,031,912
Teamsters Each 1% = $ 68,832

 

The financial benefit to employees in negotiating the 2012-13 contracts was the avoidance of any newly negotiated salary schedule reduction and the increase in Step & Column Salary Increase as well as any Health and Welfare benefit increases. In order to calculate damages it is necessary to look at the previous contract, the Teachers Union Strike and the Mediator's recommendation.

 

 

PREVIOUS CONTRACT 2009- 2012 Employment Contract CUEA:

 

The previous contract between CUSD and CUEA for the period July 1, 2009- June 30, 2012 was entered into as a result of the 2010 Impasse and corresponding CUEA strike. 

 

The 2009- 2012 Agreement can be found at the following link: http://www.cuea.org/information_v2/contract_2009_2012.pdf 

 

Time line:

 

February 25 - 26, 2010 Negotiating Teams for CUSD and CUEA presented their positions to a 3-person fact finding panel.

 

March 15, 2010 the panel released it's non- binding report containing findings of fact and recommendations.

 

CUEA Up-date to its members "Fact Finding Recommendations" 

 

March 18, 2010 - PUBLIC NOTICE - Fact Finder Report Released Case No LA-IM-3523-E issued and received March 15, 2010. This report cannot be found on CUSD web site but is archived at the following link: http://capistranoinsider.typepad.com/files/district-response-to-fact-finding.pdf

 

*CUSD's report to the Public re: Fact Finding is different than CUEA's report to its members:

 

http://capistranoinsider.typepad.com/files/cuea-summary-2.pdf

 

 

 

March 30, 2010 Message to CUSD Community Regarding Negotiations: March 29th, 2015 letter from Interim Superintendent Bobbi Mahler and President of the Board of Trustee Anna Bryson

 

The 10.1% CUEA reductions for 2009-10 and 2010-11 school year will be reached by implementing the following:

 

4 Furlough Days (2009-10)             2.16% (1 Non-instruction and 3 Instructional)

 

5 Furlough Days (2010-11)             2.70% (3 Non-instruction and 2 Instructional)

 

3.7% Salary Schedule Reduction     3.70% * see note below - only 1.2% salary schedule reductions were ever implemented 

 

Health and Welfare                        0.81%

 

Step and Column Suspension          0.74% (1/2 year freeze- means there was a 1/2 year increase in Step & Column)

 

* NOTE: Actual CUEA Salary Schedule Reductions were not 3.7%. CUEA only received a 1.2% reduction in salary and that was illegally restored in 2014-15. Plaintiff incorporates the following allegation into this complaint and incorporates it herein: Count 10 2013-14 Employment Contracts and 2013-14 Adopted Budget were entered into illegally. Contracts entered into illegally are not enforceable.

 

2009-10    0.00%    link:  http://www.cde.ca.gov/ds/fd/cs/documents/j90summary0910.pdf (County Code 30)

2010-11    -1.2%    link:  http://www.cde.ca.gov/ds/fd/cs/documents/j90summary1011.pdf (County Code 30)

2011-12    0.00%    link:  http://www.cde.ca.gov/ds/fd/cs/documents/j90summary1112.pdf (County Code 30)

2012-13    0.00%    link:  http://www.cde.ca.gov/ds/fd/cs/documents/j90summary1213.pdf (County Code 30)

 

 

 

March 31, 2010 CUSD Published a REVISED RESOLUTION FOR MARCH 31, 2010 BOT MEETING stating that "there appears to be unnecessary confusion regarding Item 5; therefore staff has recommended Item 5 be totally deleted." The Revised Resolution can be found at the following link: REVISED Resolution.pdf

The revised the Resolution deleted paragraph #5 which states:

 

 

March 31, 2010 Special Board Meeting Agenda Item #1 Implementation Plan - Consideration and approval, Resolution No. 0910-60, Implement Changes in the Terms and Conditions of Employment of the Certificated Bargaining Unit.

 

Board Audio March 31, 2009 

 

at 4:58 Fact Finding Chair- 

 

at 5:18 District has an inability to pay 2009-10 year only- after will require negotiations

 

at 5.24 District needs 10.32% in Employee concessions beginning 2009- 2011

 

Four Provisions:

 

at 6:50 Item #1- Never an intent to institute a 10% reduction retro-active to July 1, 2009 instead this resolution provides for a 3.7% salary schedule reduction commencing July 1, 2010

 

at 7:12 Item #2- Furlough Days 

 

2009-10 4 furlough days (1 Non-instruction and 3 Instructional)

 

2010-11 5 furlough days (3 Non-instruction and 2 Instructional) 

 

to revert back when Legislature 

 

at 8:08 Item 3 - Step and Column Freeze for 1/2 year (meaning a 1/2 year increase for 1/2 year beginning February 2011)

 

at: 8:29 Item #4 - Benefits

 

Maintains Blue Cross at 2010 rates and POS at 2009 rates until January 2011 allows employees to consider plan changes. 

 

at 11:00 Public Comments

 

Rhonda Whalen- CSEA President - Support Teachers

 

Laura Hannaford- Employee - Support for Speech Language Pathologists

 

Jennifer Pollea - Employee Single Subject Math Teacher - Support Teachers 

 

Eileen Navarro - Employee Support - Negotiate Temporary Cuts 

 

Michael Grovowski- Employee - Math Teacher - home value prices raise as a result of great schools. Ladera used CUSD a a selling point. Stagnation of Benefits will cause CUSD to loose quality teachers and hurt home values.

 

Chris Corpi - Volunteer for Parents for Local Control seeking to recall Trustee Maddox and Trustee Winsten. Recall - Remove - Recover

 

Comment down to 2 minutes a speaker because of interruptions

 

Greg Powers - Home owner Dana Point - Incorrect Information - Concerned about students in this process - CUEA position is to maintain status quo - not put children first. Employees would not allow this parent to speak without interruption. 

 

down to 1 minutes a speaker because of interruptions

 

Greg Young - Employee - support of teachers - encourage re-negotiating rather than implementation of unilateral cuts.

 

Casey Swenson - Employee - Teacher San Clemente High School - Unfair negotiations - received RIF notice during class and had to explain to students.

 

Allison Shick - Employee - Teacher San Clemente High School -  This Board does not respect teachers - negotiate - don't implement permanent cuts.

 

Dr. Ron Lackey - Educator since 1955 - never seen Board conduct like I have tonight. Trustees- if you don't like it here - leave.

 

Board President - you are depriving people of their constitutional right to speak

 

Linda Beraster - Parent - When you disrespect teachers - you disrespect me

 

Name ? - Teacher - Laid Off /Resident Sub - Permanent Cuts show disrespect to teachers.

 

at 38:26 Fact Finding Chair Closing Comments

 

EERA Post Mediation Negotiation Government Code Section 3548.4 

 

March 19, 2010 Union declined Mediator Assistant confirmed March 24, 2010 in a phone conversation. CUSD is not at the negotiating table because CUEA declined to do so.

 

Trustee Comments

 

at 38:24 Trustee Brick - we need to work together to avoid strike. This is Sacramento's fault.

 

at 41:34 Student Advisor Sam Alakani - cuts have to be made. Work together - we cannot start over - lets iron out details. The Board is not trying to ruin teachers with this contract. Urge Trustees to 

 

at 43:04 Trustee Winsten - this is a loose/loose - take your energy to Sacramento - Sacramento stole your money.

 

at 43:46 Trustee Maddox - Move adoption

 

at 44:00 Trustee Addonizzio - The State of California is not adequately funding Districts. Times will improve- this is necessary

 

at 42:29 Trustee Addonizzio seconds motion

 

at 42:29 Trustee Bryson- CUEA and CUSD in agreement on all concerns but 3. No one rejoices in implementing these cuts. News regarding future

 

Roll Call Vote 5 to 2 to adopt the resolution at 47:48

 

Yes: Trustee Pallazo, Trustee Maddox, Trustee Winsten, Trustee Bryson

 

No: Trustee Brick, Student Advisor Sam Alakini 

 

The Resolution passes 5 to 2

 

April 16, 2010 - CUEA authorizes a Strike 

 

April 12, 2016 CUSD published a Letter to Parents from Interim Superintendent, Dr. Mahler Ltr-Parents-4-12.pdf

 

April 14, 2010 CUSD publishes Trustees Open Communication with CUEA CUSD Trustees Open Communication with Te...

 

April 15, 2010 CUSD publishes CUSD- CUEA Provide Clarity of Positions Ltr-CUSD-CUEA Provide Clarity of Positio...

 

April 17, 2010 CUSD Publishes Information Regarding a Possible Teachers Strike 

 April 18, 2010 CUSD publishes Statement by President Bryson

 

April 20, 2010 

 

 

 

  

 April 21, 2010

 

TEACHERS STRIKE APRIL 22, 23, 24 2010 - 3 days  

 

Executed on April 26, 2010

Press Release from CUSD to Public April 27, 2010

Made public at a Special Board Meeting dated May 19, 2010.

Tentative Agreement Reached Between CUEA and CUSD

 

 

 

This Board audio and Agenda Item is missing

 

 This Item is missing

 

 June 29, 2010 Notice of Public Hearing RE: 2010-11 Fiscal Year Use of Tier Three Categorical Flexibility.