I've now had the opportunity to meet with about half of our school staffs and just want to thank everyone for their patience. Please join in the discussion here and let us know what you think. Thanks - Joel

Budget Update - February 23, 2009

As indicated above, a new 2009-2010 state budget was passed last week and has been signed by the governor. We are cautiously optimistic that the "new way" cuts to education are being implemented is to the advantage of the Arcadia schools (AUSD). While the overall cuts to education remained the same (about 9.3 billion dollars in current and next year reductions to revenue to K-12 California schools) the manner in which these reductions are made have changed: one half of the reductions will come from "revenue limits" (these are the per student amounts we receive), the other half will be through reductions to Categorical programs (a 15 percent reduction in the current year, with an additional five percent next year for a total over the two years of 20 percent). Categorical funds are used to provide programs with specific purposes such as to assist our at risk students, to provide supplemental counseling, to purchase instructional materials, to name a few. At this point, we believe instead of a $4,000,000 reduction to AUSD revenues the cut will be between $3,200,000 and $3,500,000 in ongoing dollars, combined for this year and next. This means while we will still need to reduce next year's budget significantly it will be a little less than the $5,000,000 we originally estimated based on the Governor's January budget proposal.

Federal Economic Stimulus Plan

On Tuesday, February 17, 2009, President Obama signed the unprecedented Federal Economic Stimulus Package. AUSD expects to receive as much as 2.5 million over a two year period in one time, highly restricted dollars (primarily for Title I and Special Education). While we are very grateful for the new resources we don't know when they will be received, what regulations will be required of us to use the money, what the actual amounts will be, and if the state (as they have done in the past) will take some of these dollars or reduce other allocations to us. Therefore, we are not planning to factor these increases into our budget plan at this time. Additionally, there are dollars from the plan that the state is suppose to receive targeted to reduce teacher layoffs. Unfortunately we do not know what will be done with these dollars.

Arcadia's Bond - School Construction Program

As a result of the generosity and forward thinking of the Arcadia community, we are in the midst of adding to and improving our school district classrooms and buildings. The $218,000,000 bond and additional state and local revenue are being utilized to realize the vision of what our district facilities need to be so that our students are well served into the 21st century. It is important to understand that these dollars may only be spent on the facilities program. None of these resources may be diverted to offset the budget shortfall described above, nor may they be taken from us by the state. You will continue to see new building and modernization take place even as we cut our general fund budgets.

What's Next

California Education Code requires that the school district must provide notice to any certificated employee (teachers, counselors, principals, etc.) that would be released from service in the following school year, no later than March 15, 2009. On Wednesday, February 25, 2009 at 7:00pm (District Board Room) the Board of Education will discuss and take action on a resolution which specifies which certificated employee positions may be laid off for the next school year. Additionally, reductions to our classified staff are being considered. By law, classified employees must be given 45 days notice, so their notification date may occur later in the budget cycle.

We are currently working closely with leadership from our three employee association groups to receive input on how to minimize the impact of budget cuts as well as to explore how certain negotiable options might be utilized to further reduce layoffs. It is important to note here that AUSD is very fortunate to have an exceptionally positive relationship with its bargaining units. We engage in "interest-based" problem solving and work collaboratively in reaching our contractual agreements. I am confident that these positive relationships will be one of the major factors in maintaining the excellence of the school district during these challenging times.

The Arcadia Council PTA will be hosting a series of budget forums so that I may update the community in greater detail about the school district budget and how we will manage reductions. Meetings are scheduled as follows:


March 5th - 7:30 PM at the City Council Chambers following Arcadia High School PTA meeting, (seating limited)

March 23rd - at Foothills Middle School - 7:00 PM

March 31st - Arcadia High School North Gym - 7:00 PM


I hope to see many of you there. I also look forward to your reflections and questions about the budget on this discussion blog. As always, thank you in advance for your support!

Dr. Shawn, can you please post the school board's latest minutes up here so that we can be updated on decisions made concerning budget reduction and layoffs? We would like to know what's coming down the pipe. Thank you.

You mentioned in one of your sessions that a 10% salary cut across the board is a really bad idea. Why? Personally, I think it's the best idea out there. Everybody's jobs will be preserved and most importantly, AUSD will be able to keep the student to teacher ratio from 1st-3rd at 20:1. Teachers at the middle and high school will be preserved and curriculum will have minimal impact. Parents will be very happy that they student education will not be heavily impacted. Personally, I have absolutely no problems with a 10% cut in my salary just so that someone else's job can be saved. I also feel that many teachers will not have a problem with a 10% cut in their salary as well. This is a tough economy and I hate to see my co-workers down and out. Right now there aren't any jobs out there and if teachers get laid off, we'll be sending out to a world of hopelessness and cruelty. I really think sending out pink slips is a really bad idea. You mentioned in one of your sessions that a 10% cut across the board will help us close that money gap. However, you stressed that this idea is a terrible solution. My question is, why? Thank you for opening this issue up for community dialogue.

Dr. Shawn,

I'm not much of a politician so I don't know the inner workings of how Arcadia Unified works. Can you tell the residence of Arcadia whether any of our local taxes goes to fund AUSD? I once tried calling Arcadia City Hall to ask for changes made to AUSD, but they told me that the City of Arcadia doesn't have any jurisdiction or power over AUSD because AUSD is a state entity. My question is, can the City of Arcadia and AUSD work together to dip into City budget to meet some of the monetary short falls for the next 3 years so as to prevent lay offs? I heard somewhere that the Santa Anita race track generates 50% of Arcadia's tax revenues. If we can get some of that money to hold us down until the economy improves, that would be wonderful. Have you thought about going to the City Council and have a meeting with them to discuss possible solutions to this problem? Thank you.

Here is my weekly update to the BLOG:

This week I will begin to update the community directly through Budget Forums sponsored by our local PTA Council. As indicated above the first of these meetings follows the High School PTA meeting at 7:30 at the Arcadia City Council Chambers. Last week I wrote in the BLOG that a state budget had been passed and we were cautiously optimistic that the new way these cuts were being done would be to Arcadia's benefit. While many things are still unknown, we do now believe that the reduction to our revenue next year will be $2.5 to $3 million in ongoing cuts, rather than the $4 million presented in the Governor's January budget proposal. This of course is good news for all of us. However, this still represent a substantial reduction in our revenues, and we are required to take specific steps in order to reduce staff (if that is one of the things we must do to balance our budget). On February 25th, the Arcadia Board of Education approved resolution 1190 which specified the number and types of certificated services (such as teachers) that may be laid off for the 2009-2010 school year. A total of 41 teaching positions were identified in this resolution. No later than March 15, 2009 some number of teachers (based on their seniority and other employment factors) will be notified that they may be laid off next year. By May 15th we will notify these employees again (as required by state law) to let them know one of two things: 1) the previously received layoff notice has been rescinded and they will have a job next year, or 2) they may still be laid off. Many things will affect that actual number of layoffs including the better news about the budget. We are working closely with our employee associations to explore how we might further reduce these layoffs through changes to our negotiated agreements. And we are working daily to understand how the better budget numbers change what we have to do to balance our three year budget. I look forward to the questions, comments and input I will receive at the budget forums and through this BLOG. These dialogues are an important part of our decision making processes. We will keep you posted!

Other schools has taken measures similar to res. 1190. However, some districts opted for per parcel tax like $795/parcel for $4M in San Marino. Could AUSD benefit from similar proposal and is it timely for 2009-2010 school year?

Dr. Shawn,

I have heard from some teachers that lawyers are being hired to help "pink slipped" teachers plead their case before a judge as to why they should not be laid off, is this true? If this is true, couldn't the money be used to prevent more teachers from being laid off in the first place? Would California state courts have the jurisdiction to over ride school district decisions?

My weekly update to the BLOG Follows:

Again I'd like to thank everyone who is contributing to the budget discussion by posting comments to this BLOG, reading the BLOG, and for those who attended our first Budget Forum on March 5th at the City Council Chambers. I want to assure each of you that we are considering every option for reducing the impact of the budget reductions and when suggestions are made that we have not thought of, they become part of the mix of ideas being considered. Our primary goal is to preserve staff; that is reducing the number of teachers and other staff who may be laid off.

I have a few things to update you on:

1. Preliminary Layoff Notices - Unfortunately, this is the week (March 9, 2009) we must notify those certificated staff that may be laid off from their positions for the 2009-2010 school-year. As previously communicated the maximum number of certificated staff who may be laid off is 46 including 41 teachers. These individuals will be personally contacted and notified beginning today. I want to state here unequivocally that none of these individuals are being notified because of their performance. To the contrary we highly value the work that has been done, especially by our newest teachers, to learn to be part of the Arcadia Unified team. While we are required to take these actions in order to prepare for a "worse case" budget scenario, we continue to work to reduce the number of people who could actually be without a job next year. Administrative staff talked with each affected individual last week, prior to them receiving written notice that they may be laid off. I would ask everyone to consider that for those who are receiving this information it is a difficult time. Please offer your support. If you are one of the individuals who received a notice I am personally available to meet with you for whatever purpose.



2. Mitigating the Impact - at this point the reduction to our revenue for the current year (2008-2009) and next year (2009-2010) is a combined $3,000,000 loss. That is we will start the next school year with $3,000,000 less than we expected. As explained previously, because we are required to submit a three year balanced budget this loss of revenue may actually cause us to reduce our budget by a greater amount. In order to preserve our instructional programs and to reduce the impact of these cuts we are:
   
   
   
   1. Working closely with our three bargaining units to explore possible agreements that could reduce personnel costs (remember 88 percent of our expenditures go for salaries and benefits).
   
   
   2. Exploring every option the current state budget (as approved the end of February, 2009) provide us to utilize flexibilities in categorical programs.
   
   
   3. As unknowns become more clear, balance expenditure reductions with a judicial use of budget reserves. Some of our reserves will be used to solve this problem both in the short and long term. We must recognize that several unknown factors (the May 19, 2009 special election, the June budget revision, and the ongoing negative economic conditions) require us to maintain resources to help minimize additional reductions that could come in the next two to three years.
   
   
   4. Working closely with PTA and the Arcadia Educational Foundation (AEF) to communicate with our public how they may provide direct support to their students' individual school(s), and the school district as a whole. Information will be coming directly from AEF in the near future.
   
   
   5. Continue to explore how a Parcel Tax could assist us recognizing that the community recently passed a $218 Million Dollar facilities bond. Additionally, it is possible that changes to state law could lower the passage rate required from two thirds to a super majority (55%) which would make it easier to get an additional tax approved by our voters.
   
   
   
   
3. Federal Stimulus Dollars - I participated in a conference call with State Superintendent Jack O'Connell last Friday (March 6, 2009) on this topic. The Federal Department of Education (who is responsible for creating the implementation rules and guidelines for how school districts and states use the education part of the stimulus package) has delayed the release of guidance information. Once this "rule-making" is complete and released, the California Department of Education (as well as other state governmental agencies) will need to interpret and decide how to implement these programs. Mr. O'Connell has committed his department to release any Federal dollars that are received by the California Department of Education (CDE) immediately to school districts. Additionally, initial estimates for the amount of IDEA and Title I money Arcadia Unified should receive were based on the language in the approved federal legislation. In this conference call we were told that these amounts will actually be less because regardless of issues related to the state supplanting (taking money to backfill cuts especially in using the special education -- IDEA money), the state is permitted to hold on to certain amounts of the districts' allocation. Lastly, many of the technical issues related to the use of these restricted dollars (remember that Title I and Special Education -- IDEA, are highly restricted categorical programs) have not been resolved. Therefore, we are being advised not to include these new dollars in our current budget reduction planning.

We are committed to maintaining the excellence of all of our academic and related school programs. Please continue to discuss these issues, post your thoughts to the BLOG, and plan on attending one of the future Budget Forums (March 23rd Foothills Middle School, and March 31st Arcadia High School at 7:00 PM). Thank you all for your continued support.

If you took a vote from all residents/teachers/staff in Arcadia, I'm sure they'd vote for a 10% pay cut to keep jobs. I've taken a 10% pay-cut so we could all keep our jobs during these difficult times.
My daughter's teacher is exceptionally talented and devoted to her job and has been inspirational to all her students. My daughter thinks she is the best teacher she has ever had. It would be a huge loss to our community to lose teachers like her.
If the superintendents and senior staff members take a pay cut, that'll help.

I strongly favor a parcel tax to help our community. A small tax increase wouldn't be a burden on home-owners, but a loss of home-value would be much worse. Homes can lose $10-20,000 value if the school districts go bad.
I suggest you take a vote to keep our schools strong.

Dr. Shawn and the AUSD community, please, please do all that you can to avoid these layoffs. You hold our lives and families in your hands, and it's incredibly frustrating to watch someone work night after night, hour after hour to make sure that these kids are engaged and passionate about they're learning, only to see that no matter how hard they're working and how much their students adore them, they can do nothing to change their fate.

These teachers love their jobs, and love their district. Fellow teachers who are lucky enough to not be facing these horrible, heart-wrenching circumstances, please... I know you're worried about your families and homes as well, but if there's anything you all can do to keep these lives from falling apart, I beg you to do it.

Dr. Shawn, thank you so much for putting this information in a public place where not only the educators themselves can access it, but community and family members like us as well. I look forward to more information as it becomes available.

Pay cuts across the board are better for our schools, our home values, and our community than laying off the very people who make the schools, home values, and community so highly desirable. The teachers who cherish and mentor our children are the very foundation of Arcadia's sought-after school district. It makes no sense to remove the cause of our good fortune. We can make no better investment than to keep all of our wonderful teachers!

This is our first year at Hugo Reid and my son has had the best educational experience. His teacher is passionate, engaging and challenges her students to strive for more than the "have tos" - encourages them to strive for excellence. I am reminded constantly that he is not a student, he is a scholar. I feel honored that he has had her in his life and especially during this academically crucial time. I am saddened that such a wonderful teacher could be lost to other children in upcoming years. Even more, I am saddened that such excellent performance could be met wih a pink slip.

That said, without exception, I am a "live within your means" kind of person - that means personally and by government entities. I feel taxed enough in every facet of my life. I would be unequivocally opposed to any tax hike without comparable sacrifices from the unions. If there are contributions to surviving this crisis by everyone involved, I would support a tax increase.

My son is a 3rd grader. I just heard some bad news on teachers salary 10% cut-off or laid off in AUSD. It's really tough in this poor economy. Teachers are like my parents in my childhood. They are so important. I don't have any thought of cutting teacher's jobs if state government insists to do so. But I think that means we'll lose power beside losing money. My son loves his teacher just like everyone does in class. They enjoy teacher's telantly teaching method, and wide knowledge... I'm thinking how I should explain to my child that his best teacher will possibly leave the teaching stage. Well, I think we have to find out better solution to save these excellent teachers. It'll run only when everybody raise up. We hope, we pray!

I have lived in Arcadia for almost 30 years. I no longer have children in school here. Both of my daughters went through the Arcadia schools and received a wonderful education that is serving them well as young adult women. If I understand Dr. Shawn correctly, the district will be $3,000,000 short at the beginning of next school year. There are currently about 57,000 residents in the City Arcadia. Thus, only a bit more than $50 per person would make up the shortfall. Where do I sign up??? I believe most people would gladly contribute this small amount to maintain our excellent staff and programs in AUSD. For some this would be a hardship, but for others, they could give more. I'd be willing to do it every year if necessary either through a small tax or a campaign run by AEF. Anybody else out there willing to get behind something like this?

Dr. Shawn -

The pie chart at the top of this blog was a helpful breakdown of AUSD expenditures. I have a couple of requests for further information to enlighten the discussion. (You may have presented these at your earlier budget forums which I have unfortunately been unable to attend; nonetheless it would be useful for many reading this blog I'm sure).

1. Would you please post a similar pie chart for AUSD sources of funding? If you have data/assumptions for the three-year projections that would also be great. In fact, would it be too much to include a few years of historical data for reference?

2. You said that local property taxes make up 28% of AUSD funds. Does this money come directly from the county tax collector's office or does it pass through other agencies (e.g. state government) first?

Thanks!

I am deeply concerned when learning my daughter's teacher might leave the school next year due to the budget crisis. My daughter is very fortunate to get her extremely talented and professional teacher this year. This is one of the best teachers you could ever have for your children. My daughter has been doing fine with her academic work but never found the need to put in more. In her 3rd grade, she's spurting so much interests in schoolwork and gaining confidence in herself. Her teacher really appreciates individual difference and inspires each child to develop his/her potentials.
I support the 10% salary cut as well as donation/ fundraising to schools. We need to keep good teachers for our kids, home values and the community!

I personally support the idea of 10% cut. However, I think 10% across the board wouldn't be fair. Administrators that make 100K or higher should take a 15% cut from their salary. Teachers should get a 10% cut because they make less.

To Dr. Shawn, I really appreciate your willingness to have this forum. The decisions you have the responsibility to make are extremly difficult, and to take the time to explain, and answer questions, is truly a breath of fresh air.

Dr. Shawn- Thank you for being so open with the community in this difficult situation. You have indicated that the School Board approved laying off up to a maximum of 46 certificated employees if necessary. What is the current plan for classified employees? How many classified employees are possibly going to lose their jobs and in what categories?

Midweek update:

Greetings - I am very pleased with the productive dialogue that is taking place about the school district and the budget situation, here on this BLOG. While I can't respond to every idea or question that comes up, from time to time I will post midweek updates to address things as they emerge.

In a prior post Ray Mynster in discussing various ways we might save money by affecting salary says, "Freezing the steps would create a STRS nightmare in that this would create an imbalance in the way the money is accumulated for retirement." While I must be a bit vague here because these issues are subject to ongoing negotiations with our bargaining units, I want to assure everyone that we will not implement any type of agreement that affects salaries in a fashion that would result in a negative impact on STRS retirement related to service credit. We are working closely and carefully with fiscal experts (for example, School Services of California) to ensure that whatever we agree to can be implemented in ways that protect employee rights.

Many interesting ideas are being posted about how we might makeup our deficits. Please continue to suggest things and to read how others feel and respond to your ideas. It is these exchanges of ideas that will help us develop the best strategies to balance our budget and minimize the impact on our programs. Please be assured, we are exploring every contingency and as you can see from the discussion, there are many different opinions about each option. Additionally, like most things, the actual implementation of a strategy requires careful thought, planning, in some cases reaching a negotiated agreement, and making sure that what we do is consistent with state law, local policy, and protects employee rights.

A "Concerned Parent," asks that I post a pie chart that describes how our revenue sources breakout similar to the chart posted at the beginning of the BLOG that describes school district expenditures. The various components of our revenue are not as clear cut as the components related to our expenditures (as displayed in the first chart). So while I am a bit concerned that the information may be more confusing than helpful (let me recommend attending one of the budget forums for a more complete explanation), here it is (note that "County and District Taxes" represents homeowner property taxes):

I concur with the post titled "Cuts." As a teacher I don't see why there should be a 10% cut across the board for everybody when it's obvious that administrators make much more money than teachers. That would NOT be fair at all! Administrators should get the 10% cut in salary and teachers should get the 5% cut. This only makes sense. Lets be honest about this. In our current economic crisis, we've seen CEOs and CFOs of corporate America rake in the money as their golden parachute open while laying off their employees. It's a perfect case of contradictions. I think our school district needs to show leadership by way of example. By example, I mean the following. Dr. Shawn and administrators should stand against injustice and live by integrity by willing to take a LARGER pay cut (in terms of percentages) than teachers. If administrators were to do that, they will win my heart as well as the community of Arcadia. So far, I haven't heard a single case of any superintendent in any other school district willing to make personal sacrifices for the sake of pink-slipped teachers. Dr. Shawn, we are counting on you to make some bold moves that not only shows true leadership, but personal sacrifices. Make us proud that you are the superintendent of Arcadia.

Think of each teacher as a leg supporting a table (education). Cut one whole leg and the table falls. Cut an equal amount from each table, the table still stands. It's not about "taxing the rich to support the poor" it's about standing together to support education.

It appears that there are many options available instead of laying off teachers. I feel that all options should be utilized (lowering reserves, reducing the school year by 1 or 2 days, and a salary cut) in order to save teachers jobs. I'm sure that nobody wants to receive a salary cut, but wouldn't you rather receive a small cut up to 5% than lose your job (100% pay cut)? Thank you to all who have given such valuable information.

Please make the right decisions at the future budget discussions so that we do not lose any valuable teachers.

Thank you Dr. Shawn for your concern for the teachers.

I am responding to the earlier comments regarding the board's decisions about using reserves.
We have been able to amass considerably more than the required 3% reserve and we have used some of this excess to help balance budget short falls in the past including last year.

At this point, there is no doubt that we will need to use reserves again to help offset the short falls over the next three year period. I think it has been said before but it bears repeating here, in school business we are requied to certify our solvency for the current year and the next two.

In my opinion we should not spend all the reserve in one year but over the next several years of anticipated bad budgets. We should use these rainy day funds judiciously but it is clearly raining.

Thanks for the question and the opportunity to give my perspective.

I also think that Dr. Shawn is to be commended for starting this blog and responding to concerns openly and honestly.

I concur with the post titled "Cuts." As a teacher I don't see why there should be a 10% cut across the board for everybody when it's obvious that administrators make much more money than teachers. That would NOT be fair at all! Administrators should get the 10% cut in salary and teachers should get the 5% cut. This only makes sense. Lets be honest about this. In our current economic crisis, we've seen CEOs and CFOs of corporate America rake in the money as their golden parachute open while laying off their employees. It's a perfect case of contradictions. I think our school district needs to show leadership by way of example. By example, I mean the following. Dr. Shawn and administrators should stand against injustice and live by integrity by willing to take a LARGER pay cut (in terms of percentages) than teachers. If administrators were to do that, they will win my heart as well as the community of Arcadia. So far, I haven't heard a single case of any superintendent in any other school district willing to make personal sacrifices for the sake of pink-slipped teachers. Dr. Shawn, we are counting on you to make some bold moves that not only shows true leadership, but personal sacrifices. Make us proud that you are the superintendent of Arcadia.

As an AHS parent, I appreciate this opportunity that Dr Shawn provides for public voices to be heard. However, I feel that AEF's website is considerably lacking in content, and I hope this will be improved soon.

Here's what I propose for the ongoing financial crisis:

(1) AEF should start the large scale fundraising campaign immediately.
The circumstances are changing, but the issue of insufficient funding for AUSD remains. The earlier we start the fundraising, the earlier we'll see a stable educational environment in Arcadia. Hard times call for sacrifices to be made by all and an emphasis on doing what's right; school officials and teachers should focus on teaching and less on their job securities. We parents disagree with the idea of cutting teacher's salaries. We oppose cutting school days, cutting classes offered, and increasing the class sizes in any grade.

(2) Can we raise enough money?
The math is simple. Arcadia families of about 10,000 students have to deal with about 3 million dollars in annual shortages.

(3) Who should volunteerily contribute?
-Number one: the AUSD parents. The high quality public schools in Arcadia is the main reason many of us chose to raise our children here. It is already a great bargain that the school gets $5774 per student per year to provide education at its current level, compared to the relative value of expensive private schools. We should be willing to cut our own salary to help AUSD. This math is also pretty simple - just imagine 1% of our collective salaries going towards AUSD education in the midst of this economic crisis.
- The bankers, realtors, financial advisors, traders, lenders … Need I say more? Can't we spare a tiny fraction of our bonuses and profits?
- I am sure that the AUSD leaders will be among the first to make donations, and many teachers will follow.
- Arcadia businesses and organizations, for profit or non-profit. A few are already ready to contribute with their donated monies and reserves.
- Arcadia residents who have benefitted immensely from the great schools.

Yes, we can.

I sent $ 100 check to Arcadia Education Foundation today. Let us start it here. $ 100 is nothing as compared to the loss the district will have. I would suggest all of the households to contribute just $ 100 and we would come out ahead...!

It is ironic to see how enthusiastic some parents are willing to make personal sacrifices by donating money to help these pink-slip teachers, but I see no initiative from the superintendent to do likewise with his own salary. Personally, I don't mind contributing money to help the pink-slip teachers. Our children are our future, but it appears our superintendent is more interested in preserving his huge salary than offer any personal sacrifices. In the news this week, Obama berated AIG for distributing millions of dollars worth of bonus money to executives despite receiving billions in US government bail out money. What would Obama do (WWOD) if he were to get wind about how our superintendent rather cut teacher jobs than to first consider a personal pay cut? Mr. Shawn, if you are an Obama supporter, then you need to do the right thing.

I am one of the 66 teachers who received a pink slip last week. Though I truly appreciate the support expressed on this blog, I feel compelled to respond to the calls for Dr. Shawn to take a salary cut. First of all, he doesn't make enough money that a cut in his salary would make any appreciable dent in the budget gap. While such a symbolic measure on his part might spur generosity in others, he is not gaining any personal benefit from the current financial crisis, nor can he single handedly save a single teacher's job. He, like the rest of us, is doing the best he can in a bad situation and his responsiveness and availability are to be lauded. Yes, I want to keep my job - I love working in Arcadia, in no small part because people like Dr. Shawn work so hard to keep us moving forward, offering unparalleled support to help us all achieve more.

The criticism of Dr. Shawn is totally uncalled for. I have never heard or seen him write anything about what he may or may not do with his own compensation, yet it seems members of this community are ready to sacrifice him for their own rhetoric and agenda. Comparing AUSD admins to AIG - give me a break! This is time for the community to come together and support the district - meaning the students, teachers, and administration. Please don't make any misleading or defamatory statements on this forum. Dr. Shawn is already sticking his neck out to reach to the community. Unjustified attacks against him is counterproductive and downright harmful to the community spirit AUSD is all about.

Thanks for the buzz on AEF.

We are planning on launching a new website as early as Tuesday, March 17,
with content that will be a a significant improvement over our old site,
though perhaps a bit rough as it is still in development. In addition to the
Annual Appeal we are trying to make Scrip purchases more convenient for the
community and will add summer school information as we go.

We are setting up to take online donations, but that won't be in the initial
launch this week.

AEF will be sending a letter home to all AUSD parents requesting a donation
of $500 per student to cover the lost revenue from the State, and we will
also be requesting support from the broad community following the pattern of
some of our local peer school districts. The letter to parents should be in
the mail within the next week.

As a parent of a 7th grader at Foothills MS it was my pleasure to write the
first check for $500. This tax deductible donation is cheap compared to the
cost of parenthood (pre-school, after school activities, braces, private
school), amounting to the cost of a weekly lunch out, or a daily latte.
While many in our community are experiencing financial pressures there is no
better investment than the education of our children. That's why we moved to
Arcadia.

Thanks to the people interested in volunteering and donating to help our
students. We will be asking volunteers to help make individual appeals to
other AUSD families to help advance this campaign. We'll get this organized
through current school volunteers and through our website.

BLOG Update March 16, 2009

Welcome to Week Four of the Budget Discussion Blog

On the opening slide of my presentation shared at the budget forums, the first comment under the heading of "Why There is a Crisis" is the bullet, "Things keep changing." Unfortunately, as related to the California budget, they do. Last week staff attended a budget briefing held by the California Association of School Business Officials (CASBO). This organization is one of the groups made up of experts who keep us informed about how things related to the state budget and finance affect school districts. The news was not great. The State is now projecting an additional 5 to 10 billion dollars less in revenues in 2009 - 2010. This information is based on state receipts received in February and to date in March. And, it's based on the assumptions built into the current budget passed by the legislature and signed by the Governor in February, which include the passing of all the ballot measures on the May 19, 2009 special election (current polling indicates this is not likely).

If some of the ballot measures fail, and the budget and economic news continue to be "bad," the Arcadia school district could be facing additional reductions. Additionally, there are state officials who are discussing the possibility of using money from the Federal stimulus package to backfill deficits. These are dollars that are suppose to go to school districts, not be used at the state level. Dennis Meyers, of CASBO, in a recent budget update wrote, "In separate hearings held this week by the Assembly and Senate budget committees, Legislative Analyst Mac Taylor warned legislators about sending the money out to local governments too soon. He recommended that the Legislature wait to allocate the federal money until late May to determine where the 2009-10 state budget may need shoring up." It is clearly the intention of the Obama administration that these dollars begin to flow to school districts by the end of March.

I, therefore, think it is appropriate for members of the Arcadia community (both residents and school district staff) to contact our state representatives to let them know that Title I and Special Education federal stimulus dollars intended for the Arcadia School District should not be kept by the state to backfill deficits. Here is contact information for our representatives:


Assembly Member (District 44 - Democrat) Anthony J. Portantino

Webpage: http://democrats.assembly.ca.gov/members/a44/

State Capitol
Room 2003
Sacramento, Ca 94249-0044
916-319-2044

District Address:
215 N. Marengo Ave. Suite 115
Pasadena, CA 91101
626-577-9944

Assembly Member (District 59 -- Republican) Anthony Adams

Webpage: http://arc.asm.ca.gov/member/59/

State Capitol
Room 4015
Sacramento, CA 94249-0059
916-319-2059

District Address:
540 West Baseline Road
Suite 16
Claremont, CA 91711
909-625-1038

Senator (District 29 - Republican) Robert Huff

Webpage: http://cssrc.us/web/29/default.aspx?AspxAutoDetectCookieSupport=1

State Capitol
Room 3048
Sacramento, CA 94248-0001
916-651-4029

District Address
2605 East Foothill Suite A
Glendora, CA 91740
626-914-5046


Last week more than 60 of our certificated staff received preliminary layoff notices. I had the opportunity to meet with many of these individuals, to answer their questions and to assure them that our choice would be to retain them as our employees. I wanted to let them know that we know they have invested their time, energy, training, and heart to become Arcadia teachers, counselors, and administrators. There is no question that this group represents the type of teachers and employees we want in the school district. This is one more reason that possibly laying off staff is not something we want to do.

Let me once again state that the Board of Education and management of the school district is committed to taking every step possible to minimize the number of staff (certificated and classified) who may be laid off from a position for the next school year. As was stated in a posting by Board President, Joann Steinmeier, included in these efforts is the use of budget reserves. Regardless, the budget crisis and the ongoing uncertainties described above may require us to reduce our staff and will require us to use our reserves judicially to weather the next several years.

I value your input. Please continue to share your thoughts and ideas here at the BLOG and through your emails. Thank you.

How about parents donating $20 per child every month. Which almost equals $4800 per month from Primary campus hugo reid.

This amount of contribution would'nt hurt much and gaurantees a monthy income.

This system could be use till we our out of this recession.

Arcadia school district can raise about $196720
per month. This amount of money can definetely help our education system

Dr. Shawn, I know you mentioned this blog in our recent interview so I've been looking over the information and comments. I want to thank you for making this discussion both clear and concise and, most importantly, open to the public. Keep up the good work!

And for those wanting further information, look out for an upcoming edition of the Arcadia Weekly, which will feature a piece regarding teacher layoffs and how the budget planning and the stimulus play into that.

Dr. Shawn,

I've been participating in the IPSF raffle for years (www.ipsf.net). It's a good way to raise funds and avoid laying off teachers. I strongly suggest you that hold a Arcadia Schools Foundation Raffle. I will be the fist to support you!

Is there a way for parents to know who got pink slips? and based on what, these teachers are laid off if not their performance?

I keep reading about schools getting stimulus money. Do we receive an amount for that? How will it be dispersed?

I have just heard that San Marino has agreed to a parcel tax to help their teachers through this difficult time. How would a parcel tax initiative be introduced into the Arcadia community. I know this idea has been introduced in previous blog entries. Is this a viable alternative for all parties involved?

As a pink slipped teacher, I know how valuable it is to be able to teach in this district. I am thankful everyday in which I am able to engage my students. I am confident that with the combined talents, abilities, and determination of all parties involved that something good can come out of all of this. As many have previously stated, it is only by coming together that we will weather this storm.

Thank you to all who have posted constructive comments on this blog. Thank you Dr. Shawn for having this blog be a place where ideas are posted today. They just might become the strategies that save us tomorrow.

Is it public information to know how much the principals and administration makes?

I have often wondered why each higher official needs an assistant and that assistant needs an assistant.

I 110% agree with the aurthor who displayed an example of percentages cut based on salary. I think it needs to be done.

For the teachers who are WILLING to take the cut, thank you for thinking of the kids first. You are wonderful teachers with a true, honest passion for what you do every day.

For the parents who would like to help financially through donations, thank you. I think it's wonderful. Open up your checkbooks, but you shouldn't expect other parents to do the same.

What is perhaps more "outrageous" and "comical" than people being up in arms about the teachers losing their jobs is the notion that others working within the district, Dr. Shawn included, ought to take cuts to their pay.

Suppose they do take a cut to their salaries; how do they decide which teachers will receive that money? There is no fair, objective way to make such a decision.

Also, you should consider first that although they certainly earn more than a teacher annually, a pay cut can only go so far. If by lving on $40,000-$50,000 (which, by the way, is less than the teachers of AUSD)for a year, Dr. Shawn can save the jobs of two teachers, this is not a permanent solution by any means. More importantly, it is not at all his responsibility to do so.

I can definitely appreciate the fact that you donate money to AEF, but to ask Dr. Shawn, any of our district's principals, or the administration to take a pay cut is uncalled for at best.

I think student family contribution is one way to close the budget gap, But, administrative expenses should also be watched closely. For example, is really necessary for each student receives the quarterly progress report by mail sent by the scholl district which cost time and money to print and delivery. Is this can be handled via email?

This blog makes for fascinating reading. Many of you have come up with creative solutions, advanced salient points, and reached out in an effort to unite the Arcadian community for a common purpose. You should be applauded for all of these things.

I worry, however, that many people are hoping to discover a "magic bullet solution" - that is, a solution that by itself solves the dilemma we collectively face. Some argue instructors should take massive paycuts; others say administrators should. Still others hold out hope that Arcadia's parents will collectively donate millions of dollars, while some favor slashing the reserves dramatically.

I don't believe a magic bullet exists.

If anything can be learned from this week - which, among other things, has seen our state's capital launch very public threats to redirect federal money that was intended for our district and others like it - it's that our problems have cropped up for a multitude of reasons, and that even our potential solutions have flaws.

Since no perfect solution exists, we should be advancing as many of them as possible simultaneously - yet moderately. Perhaps a 1% cut in salary, a 2% cut to our reserves (partly to entice potential retirees to make the jump), and a 1-2 day cut in our calendar could reduce our shortfall to the point where Arcadia's parental donations can cover the rest. (I realize this sounds similar to Raymond Mynster's proposal; it's one I happen to favor.)

In any case, I urge those of you who want to help to continue exploring ALL avenues. Donate. Organize. Negotiate. Sacrifice.

Demonstrate pragmatism, but demonstrate compassion, and find a way to make this work - because if we're not starving for ideas (and the blog's existence seems to testify that we have many), we owe it to our teachers, children, parents, and administrators to do so.

We can fix this. We can't do it painlessly. We shouldn't harbor any illusions that we can. But that doesn't mean we shouldn't fix this. The alternative is worse.

I hope we have the strength of constitution to do what's right for those at risk - our young teachers, our young students, and all of our families.

Thanks for your consideration and support.

Dr. Shawn,

We moved to Arcadia for many reasons. One of the first was for the schools and our children, I feel get the best education around. Thank you for this.

It may have been posted before but I didn't see it. Over the years we have received mail letting us know that Arcadia is near the bottom of the property taxes paid, verses the money that comes back to the school district. Why is that and how can it be changed? While I agree with some of the funds going to school districts with lower taxes, funds and ability to serve their students as well as Arcadia, can't we reverse this a bit?

Dr Shawn, if we were to compare the property tax funds with the top 10-20 school districts, or schools, in the state, isn't there a way to get into parity with them? This seems to be a very unfair equation being used when it comes to AUSD. Even though our scores keep getting better and better.

Also, we all voted in the bond measure for construction that adds-on a significant amount to everyone's property taxes. For that Arcadia residents should be commended for walking the talk, and taking care of their own school district when the state fools cannot.. If AUSD needs another $50, $100 from everyone to help keep these great teachers and support staff, sign me up.

Dr. Shawn,

(1) Thanks for this blog. and for keeping this issue out in the open. I hope the Obama administration, the congress and the CA state government follow your lead!

(2) Can you post the annual pay increase (%) from last two years that was given to teachers and administrators?

(3) Is there any negotiations with the unions to ask for pay cuts or pay freeze for the next couple of years?

(4) I learned from the state dept. of education that the overall student enrollment is declining in most school districts each year since 2005, yet the school budget keeps increasing. This was confirmed by the LA USD interim Sup. Did the student enrollment decline in Arcadia? If yes why was the budget not kept in line with the number of students. Can you please give us some numbers and enlighten us.

(5) Other than through layoffs (which is against state law) does the AUSD have a system to weed out ineffective teachers and administrators based on their performance irrespective of their seniority? If not what is the incentive for teachers and staff to perform year after year?

Thanks

Dr Shawn,

I would like to send kudos to you and your staff for the efforts of outreaching to the community. The awareness of the economic impact on AUSD budget will bring us together for solving our own education crisis.

I am a teacher at graduate school where my students participate the evaluation of my performance and provide suggestions/comments. Every teachers would be appreciated the encouragement and advices from the students to improve their communication and teaching skills. The school can benefit from students' anonymous evaluation for decisions of what courses to offer and teachers to keep other than their seniority. I am sure Arcadia high school students would love to participate and make the school a better school for themselves and their siblings who will soon come to the same classes. I would suggest letting all AHS students to participate and vote for the courses and teachers that they would like to have. Let the number and statistics help the school to make good decisions and keep more young and talented teachers.

I am very appreciated that AHS has offered AP Chinese class for the first time and the teacher has done a wonderful job. My daughter hope the class will continue so her little brother will have the same opportunity to take AP Chinese.

Dr. Shawn:

As a parent of a FMS student, I commend and applaud you for making this forum available to the community to voice their concerns.

When will Sacramento or D.C see the light and put edcucation first period! We need a TARP fund for education.

We pump so much money into wars and wasteful (useless)governmental special interest projects and as usual our kids always get short changed.

We all know, without education, we are less competitive, crime increases and so on and so forth. No one needs a Masters Degree to figure this out.

We will come out of this very bad spiral, but at a huge cost to society and the sad fact is, generally people will go back to their old ways once things stabalize.

We're known for greed and the infamous Wall Street bubbles that haunts them this very moment. I'm in a profession that requires we take ethics classes and that's a sad fact as regulators deemed it necessary to implement this reg. Wall Street traders may learn a thing or two from taking ethics.

It's the American Culture and media Dr. Shawn. Kid's graduate out of USC, UCLA, etc. with a B.A. expecting to earn out of the gate $75K plus. In the age of technology, new graduates are looking for fast money. Although this is just a generalization, but many are disappointed when they land a $35K entry position.

So what are we teaching our kids?

Here we go again.

There's no right or wrong answer, we all need to learn and move forward and support our children and schools. This is our ticket out of baby boomer thinking.

This is the greatest country on earth and virtually anything can happen if set our minds to it.

You have my financial support! Let's not lay off teachers.

I will be writing a $$$ to AEF shortly. I hope all Arcadian students families will follow. We don't need words, we need ACTION and now!

Good luck and God Bless America!

When I add up the number on both pie charts, I seem to be missing something. The first pie chart (08-09 Adopted Budget) equal 58.44 million dollars. The second pie chart (08-09 Revenue Budget) equal 75.19 million dollars. If I read this correct, the first pie chart is the district total expense. The second one is the district total income. What's or where's the difference (16.75 million)? Is the difference restricted funding or part restricted funding and part district reserve?

I also notice, no where in this Blog. does a board member or management of the school district mention what the district has in reserve. It is mention on this Blog (not by a board member or management) that it's 9%, but is it really 9% or 9% over the require 3%? Also, can someone tell me what the reserve is equal to in dollars? Since we are talking about the district losing about 3 million a year in revenue from the State for the next 3 years, we need to know what those reserve are in dollars, not percentage. The district reserve may not be of much help if 1% only equal $100,000 but on the other had if 1% equal $1,000,000...we may have found our help.

I'm also not sure if this even apply to Arcadia, but I've read a few article over the years on the internet (by a few California unions...which I'm sure it's mostly one sided, so I'm not sure how truthful it might be) that suggest that some districts like to hide extra money in something called "a Fund 20". One article explain that this "Fund 20" is used by the district to keep track of the money they need to pay for their retirees benefits. How long does the district have to pay for retirees benefits? 5 years, 10 years, for life? Could it be possible this fund is overstated compare to the district real cost? It wouldn't be that crazy when you think about how Arcadia was able to have a reserve 3 times more then what's required by law (which I think is great that they were able to do this).

I'm hoping the District is looking at all the numbers and not just the 88% that goes to salaries and benefits (I wonder if this large percentage is normal for all school district?) Arcadia needs to try cutting any additional padding to help save the jobs of some GREAT teachers here at Arcadia.

My children often come home with their backpacks stuffed with various fliers, from local businesses, wanting us to sign our kids up for tennis lessons, art classes, etc. Do these businesses have to pay anything to the district for providing their advertising? The businesses are the ones that financially benefit for the schools passing out the fliers.

While there are so many options laid out there to solve this problem and since this is a temporary crisis (hopefully so!!) the AEF fundraising that's going out will do, as surely most of us parents would be willing to contribute as much as we could for the school district. I agree some of us are on a tight budget but we could sacrifice some for the children and for the school.
Let's go for the FUNDRAISING!!!!

Would you be able to post the Questions and amnswers from the Foothills Middle School forum held yesterday (March 23rd)? Some of us may have similar questions and it would be great to have the Q&A available. Thanks.

Except BEGGING for more money from the public, what are you trying to accomplish here? What idea will you adopt? What idea will you use in a practical way? It's been all the talking back and forth; what is the district going to do to solve the problem? It sounded very promising that at the end of this, no one will really be laid off. Are you going to take a pay cut yourself? Otherwise this is all BS!

Question to AEF Treasurer.

In addition to sending out the letter to parents (to solicite funds), can the letter be sent out to the entire Arcadia community? Also, could letters or donation forms be placed at local businesses (fast food, grocery stores, post office, etc)?

Just some numbers to consider... If the approx. population of Arcadia is 55,000, and each person donated just $20, then $1,100,000 would be raised.

In addition to my ‘strong support of AEF lead fundraising' message which accounts for about 1/3 of my opinions, I would like to take this opportunity to express another 1/3.

K-12 education is the most important time period in a person's lifetime to build one's views of one's self and of the world. Needless to say that those families who have decided to raise their children in Arcadia value the educational environment provided by AUSD and are concerned about the qualifications of the school administrations and teachers. An important part of what the school leaders paid for is to recruit the best educators and to get rid of underperformed ones.

Over the years, we feel that it's almost by luck if our children can get a ‘good' teacher for a given year or subject. There are many great teachers in AUSD who have made positive influences on our children's lives. Here are some recent comments quoted from ratemyteachers.com about some of the best teachers of AHS.
‘He really cares about his students and is totally understanding. Also teaches life lessons now and then.'
‘She knows how to teach and above all she cares.'
‘… teaches you how to think, not how to memorize facts. Really teaches you without giving busy work. His class is one of the few that I look forward to everyday.'

Although most teachers and administrators get mixed evaluations from students and parents, negative comments are common for some AHS staff.
‘It's really hard to learn things from *** class, because *** is unsure of what she is doing and just copy everything from the book and have no idea of what is she doing.'
‘can't really teach and keep the class under control.'
‘… is definitely among those teachers who are classified by students as "easy" and "lazy." During class, she spends most of the class talking on the phone … She, however, assigns a LOT of projects, most of which have to be self-taught.'
‘… seems very unfriendly and … pretty useless.'

We realize that students' opinions cannot always give a complete picture and some problems are dependent upon individual abilities and talents.

We hope that in the future forums Dr. Shawn informs us on the procedures that AUSD takes to evaluate the administration and teaching staffs. We parents support education systems willing to change. Crisis times can also mean opportunities. We strongly support AUSD continuing to take actions to recruit the best educators and remove the inefficient, unqualified and under-performed administrators and teachers.

I agree with another blogger here. With all this talk about AEF raising money from parents and the community, this is still NOT enough to close the deficit/money gap. There needs to be more actions. We here all agree that we as Arcadia community are willing to make personal sacrifices by donating money. Now the question remains and still has NOT been answered - Dr. Shawl, what personal sacrifices are you going to make in terms of your own salary? We as the community of Arcadia are making our own personal sacrifices by giving a portion of salary to help these pink slip teachers. I expect you, as the leader of AUSD, to rise to the occasion and lead us by showing that you also care about these pink slip teachers. There's no better way to SHOW and DEMONSTRATE your CONCERN and CARE by cutting your own salary and donating that to help keep a few of our teachers from being laid off. We as the community of Arcadia are placing our wallets on the alter as a sacrifice pleasing to our beloved pink slip teachers. Now it is your turn.

In the March 25 edition of the LA Times, page 2, Steve Lopez had an interesting op ed piece on seniority retention for teachers. You can check it out at http://www.latimes.com/news/local/la-me-lopez25-2009mar25,0,4942695.column

No doubt this can't change what's happening now but perhaps now is the time to start thinking about making this change in the future.

I have to say...been reading the blog and still have not read an answer from Joel Shawn in regards to his or his administration's salary. I'm thinking now that this will not be easily answered for...

NONE of the administrative staff is getting pink slipped. NONE of the administrative is receiving a salary cut...NONE OF THE ADMINISTRATIVE POSITIONS ARE EVEN EFFECTED BY THIS CUT!!!!!!!!!!!!! Yes, only teachers...

I may be mistaken..but IS IT THE ADMINISTRATION STAFF THAT IS TEACHING OUR CHILDREN THEIR EDUCATION??????

If so...then great...lets FIRE our UNDER VALUED teachers and RETAIN all the HELPFUL (???....NOT) administration staff. This is now making sense for myself.

And to think...we all bought homes here for a PREMIUM price because we deeply value our education system.

I'm starting to feel as though, you, district staff / administration, have absolutely NO interest in my children's best interest, but your very own and you want me to do what for you?????? Donate, fundraise, etc... OKAY!

MY OWN BOTTOM LINE: Too many administrative staff at AHS and too many inefficient senior teachers at AHS. I too, agree with the other parent about AHS, too many of our children are being self-taught there and having to pay for after school tutoring. So...I should not be outraged that those senior teachers who no longer have that passion or drive should stay vs. the younger teacher who has that passion and drive should be fired?

Does 1 + 1 still equal to 2 ?????

What's the point in education without educators?

I really appreciate the fact that we have this forum to share ideas. This is one of the many things I will miss about teaching in this district. I wonder how many districts are offering such a forum for discussion.

Thank you Dr. Shawn and to those of you maintaining this blog.

Thank you parents, students, and community members for showing your support for education and for teachers.

I truly hope this situation does not drive away the bright and dedicated new teachers from the profession. It's hard not to be drawn away from the field when we face layoffs year after year with no chance of fighting for our job (due to the process of seniority having no basis in performance whatsoever). It's not easy to come to work each day and put 120% into a job where that 120% is not recognized and has no influence on whether or not you keep your job. Yet, we do it because we are passionate about education and we care for our students and for their futures.

Thanks for all of the support. Now I must go attend the lottery that will determine my place on the seniority list...my fate drawn from a hat.

BLOG Update March 26, 2009 -- Week Five

It's amazing to me that we are in our fifth week of this robust and impressive discussion. I continue to be amazed and inspired by the quality of ideas, questions, and thoughts expressed here. I know that we don't all agree on every issue and that when we discuss our children's schooling there are strong feelings and various points of view. And, that's okay. I do want to remind those participating that the purpose of the BLOG presently, is to discuss the fiscal crisis and its impact on our Arcadia schools.

I think as a community we have a lot to be thankful for. I know I am grateful to be part of this discussion and to have the opportunity to lead the school district through this process. I remain confident in our ability to maintain our high standards and to continue making our schools the best place possible for our students.

I have a few things to update you on:

Budget Forums:

I'd like to thank everyone who attended the forum at Foothills Middle School Monday evening (March 23, 2009). I greatly appreciated the questions and discussion that followed my presentation. The last Council PTA sponsored forum is scheduled for Tuesday, March 31, 2009 and will be held at the North Gym, at Arcadia High School. As a reminder, simultaneous translation into Mandarin and Spanish will be available.

Federal Stimulus Money:

In last week's update I shared information about discussions occurring at the state level about new projected deficits (they are now projected to be 8 billion dollars in additional deficits through the 2009-2010 budget-year) and the LAO's recommendation not to distribute Federal Stimulus Money to schools until late May to determine where the 2009-10 state budget may need "shoring up." Later in the week administration representatives Jeannie Oropeza (Department of Finance) and Kathy Gaither (Office of the Secretary for Education) announced that it was the Governor's intention to release Federal Stimulus funding to schools as soon as funds become available. Oropeza and Gaither acknowledged, however, that California general fund revenues were continuing to deteriorate and that K-14 education funding will be adjusted downward at the May Revision (which won't occur until June 9, following the May 19th special election). Jeannie Oropeza made it clear that the Administration had decided to "separate the release of federal stimulus funds from the level of state funding that would be provided in 2009-10."

I said in last week's update, "I, therefore, think it is appropriate for members of the Arcadia community (both residents and school district staff) to contact our state representatives to let them know that Title I and Special Education federal stimulus dollars intended for the Arcadia School District should not be kept by the state to backfill deficits." I believe it is still appropriate for you to contact your legislators and let them know our position on the stimulus money as well as your feelings about the funding of public education.

In last week's post I gave you contact information for these legislators but inadvertently omitted Assembly Member, Anthony Adams. Here is his contact information (which has also been added to last week's information):

Assembly Member (District 59 -- Republican) Anthony Adams

Webpage: http://arc.asm.ca.gov/member/59/

State Capitol
Room 4015
Sacramento, CA 94249-0059
916-319-2059

February, 2008 State Budget Act:

Recent polling of likely voters on the May special election indicates many (and potentially all) of the measures could fail. If all of these measures were to fail, the state would be faced with an additional $6 billion budget hole. This in addition to the 8 billion dollar deficit mentioned above. If these measures were to fail in May and the LAO data is accurate the legislature will be faced with an additional $14 billion shortfall. For your information here are the polling data as of March 26, 2009:

Proposition 1A (Budget stabilization):
Yes: 39%
No: 46%

Proposition 1B (Education funding):
Yes: 44%
No: 41%

Proposition 1C (Lottery securitization):
Yes: 37%
No: 50%

Proposition 1D (Prop 10 redirection):
Yes: 48%
No: 36%

Proposition 1E (Prop 63 redirection):
Yes: 47%
No: 37%

Proposition 1F (Legislative salaries):
Yes: 81%
No: 13%

The Ongoing Process:

We continue to work on the school district budget. Specifically, as I've indicated previously, we are negotiating with our three bargaining units to determine what agreements may be reached that could reduce layoffs. We continue to review our expenditures and revenues to see where we may be more efficient. The school district budget development process is moving forward and we will submit a Board approved, balanced three-year budget in time by June 30, 2009.

Lastly -- the Arcadia Educational Foundation (AEF) is in the process of sending out a letter asking the community to assist the school district. I hope you will look for this information and take a minute to read and consider the request. I can promise you that any money raised through this appeal and donated to the school district will be used to reinstate or hire staff. I would also like to publicly thank the AEF Board of Directors and staff who have work tirelessly on this appeal.

I look forward to continuing this dialogue with you and hope to see many of you at the budget forum next Tuesday, evening. Thank you for your continued support.

I wish cooler heads would prevail on this community forum. It seems a lot of unnecessary anger is directed at the AUSD administration. AUSD has done a superb job given its limited resources. Our district headquarters look no better than a temporary classroom - epitomizing the district's fiscal priorities. Angry parents should direct their vitriol at our state government for its fiscal irresponsibility and its school funding mechanism, which is disproportionately unfair to AUSD students. As was noted in a previous post, even La Canada Flintridge, a much wealthier community than Arcadia, gets more school funding per pupil that AUSD. In the short term, we can only do our best to mobilize our individual resources to provide the best for our children. $500-1000 isn't chump change, but think how much even the cheapest private school would cost?

Apparently, Dr. Laura Schlesinger of KFI was the keynote speaker at the Mayor's Community Breakfast. Today, on her talk show she had only good things to say about the city of Arcadia. She also announced that the city of Arcadia was voted the "Best place in California to raise kids". Let's try to maintain the level of education at its superior level.

I sent in my PTA "Tea Party" check and will now turn to the AEF website for their donation form!! The caliber of teachers in the AUSD is astoundingly high, and we will gladly donate. Let's meet our teachers half-way...if they can bring to the table a potential pay cut, parents ought to bring to the table enough donations to reduce the % of hit these talented teachers will have to take.
I was able to take my kids out of private school when we moved to Arcadia, and speaking from experience, we pay such a small price for the competence and talent we gain from our Arcadia public school teachers! We ALL need to be part of the solution!
One final comment...I hear rumors about many out-of-district students being allowed into our schools. If that is true, how can we reach these out-of-district parents, to assure they are helping solve the financial crisis?

Nobody is blaming AUSD administration. What I think is happening is that some parents and teachers want equity. Think about this. As a true leader in charge of a non-profit organization (AUSD) that is geared towards helping children, it would make sense if the order of action were in the following sequential order or something similar.

Problem: Major budget short fall.
Actions:
1. As leader, cut his/her own salary to set an example for subordinates to follow.
2. Cut unnecessary programs and wasteful spending.
3. Raise money.
4. Cut employees as a last resort if all other avenues have been exhausted.

The problem with our AUSD administration is as follows.

Actions:
1. Cut employees, programs and wasteful spending.
2. Raise money through AEF.
3. Leave administrator salaries untouched.

As you can see from above, the order of actions is not only reversed, there is no reduction in administrative salaries, period.

I'm not trying to attack AUSD administration. All I want to point out is that the order of actions done by AUSD administration are hurtful to our children.

A true leader is a person who is willing to make personal sacrifices and is willing to go to the front line to fight with his/her troops. A true leader doesn't just sit in his/her nice air conditioned office and slips English tea all day while answering blogs and holding public forums. Remember, talk is cheap. A true leader joins the troops in the battlefield and leads them by laying his/her life down. A true leader must be wiling to die for his/her men and women in uniform (teachers). Personal sacrifice defines a true leader. Any leader that fall shorts of that is just someone who is more interested in the prestige, power and money that comes with the job.

I'm not trying to attack Dr. Shawn and I don't dislike him. Actually, I think he's a nice guy. I just want to point out what Dr. Shawn needs to do if he wants to be a true leader. AUSD administration doesn't seem to understand this. As far as I see, at this moment in time, there is no true leader in AUSD. Dr. Shawn can fill those shoes of a true leader by rising to the occasion and correct his actions. Now is the time. His salary is the place to begin.

The debate over performance based versus seniority is never ending. But what I do know now is the laws are written as such and it is not the decision of a select few. It is comforting to know. Dr. Shawn, thanks for the informative meeting on Monday! Now, I have a question as to what governs the determination of "seniority"? How is it defined and why is it that previous non-AUSD teaching experience does not count? I work in the private corporate sector and in a lean economy like this one, experience means a lot. It's all about being effective and productive. I just hate to see quality & nurturing experience escape our district.

The AEF website is now set up to take credit card donations online at aef.ausd.net. Follow the menu link to the online donation page.

If indeed we are in times of a budget crisis, who was responsible for the sending out of expensive (39+ cents alone for postage, plus nice quality paper for the invites) invitations for the staged "Groundbreaking" ceremonies taking place this week at AHS? I assume it went to all parents in the district, so we're talking thousands of dollars alone just in this one mailing. And for what? Construction is already well under way, and has been for over a year. It wouldn't have anything to do with a certain election coming up for the school board would it, and a chance for some photo ops?
And I don't want to hear the expenditure for this came from bond money, like the rest of construction funding. That's not what the voters passed the bond issue for.

Well, Dr. Shawn, you say the buck stops with you. Did you authorize this expenditure and ceremony?

And in crisis times when AEF is sending out their own letters (which I think is fine by the way) asking for money, who really is watching the money the district office is spending?

This was an interesting article on the May elections and the budget process

Dr. Shawn,

Asking the parents to contact state is great. Asking the parents for $500.00 donation per child is great. Asking the parents to volunteer for free is great.

We love giving. We love doing all the work.
We do this to help our children.

You are in the lead. Lead of our children.

What are you doing again?

Just read Dr. Shawn's letter that came with the water bill. Does anyone know what happens if the 6 ballot initiatives don't all pass?

I appreciate the blog where everyone is invited to share information, resources, and ideas. Thank you Dr. Shawn for providing this open forum. It is a sad time when we have to consider the loss of devoted teachers and the possibility of increased class size. Today, I passed out AEF's initial launch letters to my students, and so I wanted to express my appreciation for the compassion and support shown by AEF and our community members. We're in this together, and we all have the best interest of our children and their education in mind.

Dr.Shawn:
How many teachers, exactly, received layoff notices in March? In your post dated March 16, you said "Last week more than 60 of our certificated staff received preliminary layoff notices." Then, on March 26th you wrote "58 notices of preliminary layoff were sent. Of these 52 are classroom teachers."
Please provide your most accurate numbers, especially in terms of the numbers of classroom teachers.

Just received a letter titled "Investing in your child" and the subtitle quoted "The quality of Arcadia's schools affects our children and our home values". I believe that this letter should go to all the Arcadia home owner, but not the parents only. If the intend of the letter is to keep the home values.

Should ASD asked foreign students for tuitiions, so the American Citizens or legal imigrants don't need to invest on other country's children?

The letter asked for $500 donation from each kid. It quoted "Donation to AEF will be gifted to the District and can be used to fund teacher's salaries." Apparently, this is a trick! It can be used to fund teacher's salaries and can be used to do some other thing as well. Why do not we make this as a city Measure to the Arcadia residents to pay extra tax to maintain the upper bound of the student/teacher ratio?

Wow! I haven't been on the blog for a week and am amazed at how it has grown. This is an amazing avenue to share comments.

Let's put all this passion and involvement to good use! It really excites me to read so many entries with different ideas, thoughts, concerns and support. Let's keep that going. This is the kind of passion that will get things accomplished. As a writer indicated early on, there is no one "magic bullet". There is not one single solution to AUSD's budget situation. But we must remember that we need long term solutions ~ focusing on getting through the short term will only prolong future problems (the State budget will not be fixed any time soon). It is going to take the hard work and commitment of all of us working together ~ as well as reaching out to the rest of the community. We need to raise money and cut expenses, but we also need involvement! It is clear to me that a lot of you have some good ideas and want to make a difference.

The next AEF meeting is scheduled for April 15th (since the second Wednesday of the month is during Spring Break), 7:00p at the district office. I would like to invite you to come. Bring your ideas and let's work together!

Finally, it occurs to me, as I read over the blog entries, that there are varying degrees of understanding and trust in our district's administration. As someone who is actively involved (and perhaps sometimes over-extended), I have worked with members of the administration over the years ~ Dr. Shawn included. Those of us who have had the opportunity to work very closely with him and others have perhaps had the unfair advantage of seeing his/their dedication and commitment to protecting and strengthening what which makes this district great. It is, therefore, a little difficult for me to read the blogs that question Dr. Shawn's commitment, integrity, and understanding of what is in the best interest of our children. But, with that said, I can truly understand and empathize with the frustration that people are feeling, their need to have questions answered, and their concern that the needs of our children, our community and our teachers may not be met.

Please take this opportunity and the time to get to know our administration. Ask more questions. Make an appointment to talk with Dr. Shawn and/or others. Attend an AEF (or other organization meeting) to see the partnership with Dr. Shawn in action. If you haven't attended the Budget Forum ~ go TONIGHT at the high school.

Later today I will make a posting that more completely will explain an issue that I will briefly address here. We will remove any post that specifies an individual - be that a staff person or anyone else (e.g. in the community). The one exception to this rule are comments about me. I welcome your thoughts about my role as the superintendent.

I want to make it clear to everyone participating in the BLOG that certain types of posts, including ones where an individual can be identified, will be removed.

The concerns or issues put forward in these posts should be addressed through other methods including contacting the appropriate department and or school district administration. More information will be included in my post later today.

Thank You

Hello -- recently there have been postings that prompt me to respond with additional information.

I think this discussion has been incredibly valuable. It works, in my opinion, because there have been diverse and civil ideas presented and discussed. People don't necessarily agree, and that's a good thing. Seeing the range of thoughts and opinions is precisely the reason we started this BLOG.

1) On rare occasion, there has been a posting that violates the parameters described above. When a posting uses inappropriate language, specifically criticizes an individual (other than me), or makes references in such a manner as an individual could be indentified, that posting has been removed. Additionally, if an individual has a complaint about a specific employee or something that has happened to their student or themselves, the BLOG is not the correct place to address it and their posting has been removed. We have a well defined process for handling complaints and concerns. When the problem is school-site related, begin the process with the teacher and/or the principal/administrator of the school. If the problem is with a district department, begin the process with that department's administrator and/or their supervisor as appropriate. Anyone who needs assistance may call my office.

2) Notice I indicated above it was fair to include any thoughts or comments you have about me in the BLOG. As the superintendent and the person charged with leading the school district, your feedback is welcomed. I understand that folks would like to know what I might personally do to help with the budget crisis. And, that my actions have symbolism that can be an important part of our process. To restate my position on this, I will not discuss what I might personally do relative to concessions related to my position and/or compensation here in the BLOG or publicly because by California state law, all sides of negotiations with school associations must be in closed session (not public). Therefore, I cannot comment at all on this matter. Proposals will be "sunshined" before the board takes public action. I understand that one might disagree with this and have no problem with that disagreement or people stating here what they think I should do. I do think it is unfair to imply or assume that I, or any of the management staff, are not carefully considering what we might do or how we will be affected by cuts to the budget.

3) On March 29th, "Crisis? What Crisis?" posted a comment asking if I authorized the upcoming Facilities Groundbreaking ceremony scheduled for this Thursday? The answer to this question is yes, absolutely. Again, a fair question and post. Let me point out a few things: 1) Invitations were sent to 150 individuals who have played a vital support role in the passage of the Measure I as well as by serving on various committees and advisory boards that help to ensure the building program will meet with the school district's needs and those of the community. The primary purpose of the groundbreaking ceremony is to thank the community and people who have made this program possible and to mark its importance.

We will continue to be conservative and responsible in our spending. However, we will continue to spend resources on those things that benefit the school district as a whole and enable staff to do their jobs. Whether it's to replace broken or aging equipment, train teachers, replace instructional materials, or celebrate important events, the work of the school district must go forward. I believe we, as an organization have earned your trust that the decisions we make have been prudent and in the best interest of our students. These expenditures do not affect teachers or other staff layoffs.

I am reticent to make posts like this as they could easily appear defensive. That is not my intention and I hope my words help readers understand what and why we are taking the actions described above. Keep posting your comments, thoughts, and ideas. Thank you.

I just received this $500 notice for my Kindergarten son. Here are my questions..
(1) Are we going to receive federal stimulus fund from our president?
(2) Any deadline to settle this $500?
(3) Can we make several monthly payments e.g $100 x 5 months instead of one time payment for some families who have financial hardship during this economic crisis days?
(4) Is it going to be one time donation or ??? in other words how often do we need to contribute?

If I'm not wrong, President Obama's US Stmulus Package of $ 787 Billions (= $ 787,000 Millions) was approved on 02/17/09.It was called ARRA (American Recovery and Reinvestment Act). In there, $ 144 Billions (= $ 144,000 Millions) amount of stimulus money was planned to use for "State and Local Fiscal Relief" and $ 53 Billions (= $ 53,000 Millions) amount of stimulus money was planned to use for "Education and Training" purposes. These stimulus money are already on the way, if I'm not wrong.

Today, I received the mail from AEF asking the money $ 500.00 donation for my KG child, because there was loss of $ 3 Millions funding per year by CA State because of budget shortfalls of $ 42 Billions in Sacramento Capital.

Also, in today's news, CA Treasury Dept had sold
$ 6.5 Billions (= $ 6500 Millions) 30-year bonds to revive public works. But, I'm not clear that how much money from there will go to CA state education stuffs.

Therefore, my questions right now is:

1. How long will it take to receive stimulus package money from Federal?
2. How much money AUSD will be entitled from that package?
3. How many students in AUSD and how much money we will raise if we receive $ 500/student donation from parents?
4. What is the accountability, transparency, and control of current AUSD budget?
5. What is the accountability, transparency, and control of now collecting $500/student donation?
6. What are the other plans going to be implemented beside this $500/student donation?
7. How much money will be spent to save the salaries of potential layoff of 41 classrooms teaschers per year? How long we will face this financial crisis in AUSD? What are we going to prepare for that? Will that be recurring in the future again?

Please kindly discuss/comment/confirm as needed.

Thanks everybody!

Since most of the funds are for salary & benefit, why not just do a 10% furrow like the State.

I know Arcadia is the HIGHEST PAY district in LA county. Average teachers' pay is even higher than San Marino & Beverly Hills.

It is tough time for everyone & everybody should cut some fat too.

We wrote the checks on the first night recieving the donating notice. However, we just want to hold out for a while to see other people's response. We think that if the school district is really realistic about collecting the 3.5 million that it has envisioned, it needs to drum up the donation drive. If there are only very few numbers of people respond to the donation, the purpose of saving the 41 teachers' job will be defeated. The bottom line is, if others are paying, we will be willing, and we will be willing be give more than what is asked for.

Dr. Shawn,

(1) How many non teaching staff has been given pink slips?

(2) How many non teaching staff works at the district office?

(3) Is there a 3rd party who can certify that all possible non teaching staff has been reduced before considering cutting a single teacher? In my humble opinion, I don't see how the school district staff can determine how many AUSD office staff can be let go with minimal disruption to the functioning of the schools.

(4) As a parent I'm willing to contribute, but before that I would like to find out if the school board and the district has done what it can do to balance the budget, by cutting some of the administrative staff at the district office.

(5) If the enrollment has been declining, as you have stated in a previous post) why did the district keep hiring new teachers last few years?

(6) Are the Teachers Union willing to make some sacrifices by (a) Taking a pay cut
and (b) Changing their rules to allow exceptional teachers from getting pink slips.

Anyone who claims to be genuinely interested in education/kids learning etc. will demand that the teachers who will get pink slips be determined based on their performance review. That's how most of the world works.

Thanks for the time you spend on replying these blog post. You are doing a great service to all Arcadians.

Although I think we should all do our part by donating, I'm a little confused as to why there's been no news regarding:

1) How much of the reserves the district is willing to spend over the next few years to preserve our exceptional teaching staff

2) If there has been any progress in making very small salary adjustments that could, when combined with donations, calendar adjustments and reserves, save jobs

3) Whether there have been any progress on making small calendar adjustments to in-service days, etc. that could, when combined with other efforts, save jobs

I know these negotiations for 2 and 3 are private, but at least it would be nice to know that a portion of the reserves has already been committed to saving these teachers, and that negotiations are still ongoing.

I appreciate that our discussion is useful to you, Dr. Shawn, but time is ticking, and I haven't seen that any meaningful progress reports have been made available.

To AEF Bill Klipstein:

Fundraising Idea.....

How about a jog/walk-a-thon at each school site. My kids (in a different district) just participated in one and the school raised $50,000. I'll help organize. They did it by grade and walked around a 1/8 mile track (field) and got donations per lap (or flat rate)

I've written this before in the past but it seemed people have ignored it. I am an ardent supporter of Obama and I believe the way out of this financial mess is to have a tiered form of income cuts. Those who make the most gets taxed the most and those who make less get taxed less. If we take the President's economic model into consideration and transplant it to the school system then it would look something like the following.

150K and up - Cut 8% to 9%
93K to 149K - Cut 7%
48K to 92K - Cut 5%
30K to 47K - Cut 3%
20K to 29K - Cut 2%
1 to 18K - Cut 1%

Now of course, these numbers are hypothetical and require input and negotiations from both administration and teacher's union. I truly believe we need to move the school district towards this solution because it's fair to everybody. The more you make, the more you pay. It's simple and effective and would eliminate all the talk here of unfairness. Let's stop criticizing our superintendent and lets contribute ideas toward a solution to save teacher jobs. Thank you Dr. Shawn for hosting public forums and this blog.

The week ending April 3, 2009

In recent postings there were several questions and comments related to timelines, confidentiality, transparency, and reporting. I will make an effort to address these in the following comments:

As I've indicated previously we have three organizations that we negotiate with: 1) Arcadia Teachers Associations, 2) Arcadia Pupil Support Services Association, and 3) California School Employees Association. These negotiations are governed by state (and in some cases Federal) laws. Negotiations result in a written contract that describes the agreements reached including but not limited to things such as salary, benefits, work year (calendar), hours of employment, and the term of the contract. There are no specified timelines in state law or education code that defines when negotiations must end. We are required by law to meet and negotiate in good faith. These are subject to the current contract. Practically speaking, we negotiate annually with our associations and typically reach agreements mid school-year. This year, primarily because of the lateness in the passing of the state's budget, we are still negotiating. Also as previously posted, these are confidential negotiations. Also worth noting, the laws that govern our requirements to negotiate with certain types of school district employees preclude us from taking unilateral actions such as reducing the work-year or implementing across the board salary reductions.

The confidentiality of negotiations not withstanding, the agreements reached are "sun shined" and ultimately approved or rejected at open Board of Education meetings. Because the Board of Education is required to approve a three-year balanced budget and submit it to the Los Angeles County Office of Education no later than June 30th of each school-year, and since the agreements reached through negotiations affect the budget, we attempt to reach agreements in conjunction with our budget development and approval calendar.

Transparency and Reporting -- as indicated above, the agreements are approved in open board meetings and are part of the public documentation that is prepared for the Board of Education. Any individual is welcome to come to the meetings, address the Board (there is a protocol for doing this), and comment on things on or off of the meeting's agenda. The Board's actions and our Board meetings are governed by the Brown Act, which applies to all meetings of local public agency legislative bodies (including Boards of Education). The agenda for each meeting is posted at least 48 hours in advance of the meeting in a variety of public places including the district office, school sites, and city offices. The board reports associated with the agenda are available for review by members of the public the night of the board meeting or 48 hours in advance through a request to my office. Lastly, it is through our board meetings that we report to the public. To say this differently, we will not post the results of our negotiations in this BLOG. They will be made public as part of our regular operations through our Board of Education meetings, and the Board approval processes -- which are open and public.

Next week, April 6th -- 10th, is the school district's spring break and all school sites will be closed. I would once again like to thank everyone who has participated in this BLOG discussion. And once again, I'd like to acknowledge that it is not our goal to have everyone agree. The diversity of opinions expressed here is healthy and appreciated. I hope everyone has a great week. School resumes on Monday, April 13, 2009.

1. Is this $500 is mandatory or optional for the parents?
2. Any consequences to who cannot afford to contribute?

What is the status of negotiations with the 3 bargaining units? When will the final decision be made as to whether there will be a pay cut, etc, or some other form of agreement?

It seems that by offering a bigger incentive to teachers to entice them into retirement would be advantageous in saving teachers jobs. For example, most of the retirees probably have a much larger salary than the pink slipped teachers. If more of these teachers retired, then fewer teachers would need to be laid off.

But, a larger incentive would need to be offered, which it appears would be financially beneficial.

I've been keeping an eye on Sacramento more lately and just wanted to point out a few things about State funding and our current fiscal crisis. Did you know for example that the State's intentional heavy reliance on income taxes from high-income people is in part directly responsible for our impending teacher layoffs? The Arcadia budget shortfall from the State of $3M is equivalent to the income taxes on only 15 of the highest earning individuals in the State. Really! Read on…

First, as Dr. Shawn has pointed out in the budget forums, 58% of the district funding comes from the State. If you include the "County and District Taxes" that are sent to the State before being returned to us [28% of our budget; Shawn blog post 3-11-09] and the funds from the State lottery [1.5%; budget forum slides], that means that a whopping 88% of our budget passes through the hands of the State legislators! The reasons for this are complex and can be better described by people other than myself, but you can clearly see that we are heavily dependent on what happens in Sacramento.

Ok, so how does Sacramento spend the money it collects? The largest four categories are Education (41.3%); Health & Human Services (25.3%); Business, Transportation, & Housing (9.5%); and Corrections & Rehabilitation (7.3%). Education is further broken into K-12 (31.0%) and Higher Education (10.3%). (Note that higher education receives only a little more money than prisons in our State).

So, roughly a third of the money Sacramento collects goes to K-12 education like our district. Again, there are complicated reasons and formulas that go into K-12 funding (e.g. Prop 98) so the Legislature's hands are tied in some respects in setting funding levels, but they do exercise discretion, many times to the detriment of education as Dr. Shawn has shown.

Now, where does this money that Sacramento spends come from? Over half comes from personal income taxes (54.9%), about a quarter from sales taxes (28.4%), and most of the remainder from corporate taxes (11.6%). Because of the progressive State tax code, half of those personal income taxes are paid by the highest-earning 144,000 California taxpayers [The Economist, Nov. 13, 2008]. Let me put that another way, income taxes from less than 0.5% of the State population funds 25% of the State's expenditures. Those incomes take a huge hit when the economy is down, and when their income suffers, State services suffer!

To sum it up: 85% of the State's income is from personal income taxes and sales taxes which both are way down in the present economy. Because of that, the State has to cut back. Since a large part of State spending is for K-12 (31%), it's difficult to cut elsewhere and keep K-12 intact. And since almost 90% of Arcadia's money passes through Sacramento, we get severely hurt. And who determines how much is cut? The legislators.

If you've watched the California budget process for at least a decade you know what happens in times of boom and bust. Remember the late 90's? With the dot com boom the money was rolling into Sacramento. What did the governor and legislature do? They spent it, mostly on commitments that would recur for years to come and generate political benefits (e.g. the public safety employee pensions in 1999). When times got tough, like the dot com bust, revenues were down but the bills were still due. This is what in part led to the successful Davis recall. Since then the legislature has been inclined to borrow its way out of this mess. What do you think? Is this sound fiscal strategy? Should the legislature have recognized the one-time cash bonanza and smartly planned ahead for leaner years?

The simple reason we are facing teacher layoffs in our district today is because of the recurring fiscal mismanagement of the State. Prison guards are retiring now on the salaries of our Arcadia teachers because of deals made 10 years ago in Sacramento. We are hypersensitive to economic downturns and are stuck with a legislature that is not willing to work on real solutions.

Our school district is heavily reliant on the way the State collects and distributes money, and that is controlled by the State Legislature and ballot initiative process. Very few citizens are happy with the Legislature (approval ratings are at or near record lows, in the 10-15% range). Every other school district in the State is facing the same problem as us. Although some in this blog and budget forums have suggested that we can't fix Sacramento and have to work with what they give us, it seems to me that this is now an opportunity to engage people across the State to fix what is broken. (How to do that is left to a separate discussion).

So, educate yourself and write your State Representatives! Tell them what is wrong and what, in your opinion, they should do (I have already done this). Tell your friends and neighbors to do the same. And please, feel free share what I've written here.

If you want to try your own hand at balancing the State budget in these hard times, check out the fun tool that Next 10 has developed: http://www.nextten.org/budgettool/site/thesim/flashcheck.html.

The Sacramento Bee has a good website discussing State politics: http://www.sacbee.com/capitolandcalifornia. Dan Walters and Daniel Weintraub are good columnists to read for in-depth information.

CA Budget Data Note: State budget information is not easy to find on an official webpage in summary form. The numbers I state here came from the Governor's budget website last fall, before the March agreement in the legislature and the May budget revision. The absolute numbers have changed since but the proportions are still about the same. You can find the Governor's 2009-10 proposed budget at http://www.ebudget.ca.gov/BudgetSummary/BSS/BSS.html.

At the April 16 AEF meeting we presented a check for $160,000 to the District as part of our Annual Campaign.

Thanks to those who have given already (we will post donors' names to our website soon). We welcome your continued contributions and look forward to writing the next check. With your support we can make it an even bigger one!

Support our schools. Contribute to AEF.

I want to publicly thank those who have contributed to date to the AEF Annual Campaign and to AEF for making this contribution of $160,000 possible. Of course we have a long way to go. Nonetheless, it is a great start and greatly appreciated.

I also want to reinforce a few things that have been said relative to the fund-raising campaign:

1) Arcadia Unified School District is a California Public School and therefore each and every child is guaranteed a free education - in no way will a family's capacity to donate affect their student's enrollment in their school or in the school district.

2) No child will be positively or negatively affected by the status of their family's donation.

3) We, the school district, very much appreciate what AEF and PTAs do for our schools and the school district. For us it is not, and never will be, an either or. The only distinction we want to help people understand is that money raised by and for PTA will go directly to a school site but may not be used for any types of district employees' salaries (this is true of the SCRIP program as well). Money raised by AEF, and especially through the annual campaign, is and can be collected, then donated to the school district (not a specific school site), to be used to pay for staff salaries. Let me also say publicly again, that dollars donated to the school district by AEF from the campaign will only be used to backfill positions or parts of positions reduced because of the current budget crisis.

Lastly, as I've indicated previously, we are continuing the negotiation and budget development processes. As we go forward I will be sharing the outcomes in general terms relative to how we are making up the shortfall of resources from the state and balancing our budget over the next three years. That is, while, I am not going to talk about the specifics of negotiations, I will share what the net effect is when combining expenditure reductions, staff layoffs/reductions, use of reserves, and donations from the AEF Annual Campaign.

I want to finish by thanking everyone who reads this BLOG and who contributes to it. And, I want to thank every individual who volunteers their time to make this school district what it is and what we want it to be. By the way, next week is Public Schools Week. Next Thursday (April 23, 2009) is our annual Public Schools Luncheon sponsored by the Arcadia Masonic Lodge (where we recognize employees and our 34 students who are National Merit Scholarship Finalists). And, there are 39 days left to this school year! I hope everyone has a great weekend.

I am very pleased to share with you that we have just submitted our application to the California Department of Education so that we may access the State Fiscal Stabilization Fund of the American Recovery and Reinvestment Act (ARRA) of 2009. We received information last night (Friday, April 17, 2009) that the application was available and submitted our information Saturday morning (April 18, 2009). While we do not know precisely when these dollars will begin to flow to our school district and what the regulations for their use will entail, we were pleased to take this first step in ensuring that Arcadia gets access to these resources.

Detailed information about the use of the Stabilization Funds is available on the ED American Recovery and Reinvestment Act of 2009 Web page at http://www.ed.gov/policy/gen/leg/recovery/index.html.

You can find general information regarding the ARRA on the California Economic Recovery Portal at http://www.recovery.ca.gov/. Information on the education-related aspects of the ARRA is available on the CDE ARRA Web page at http://www.cde.ca.gov/fg/aa/ar/.

As more information becomes available we will keep you updated.

We have heard from school personnel that the counselor/psychologist group and all district administrators are taking cuts in their salaries and/or freezing current salaries while working more and that the teachers are in the process of voting on their offerings. We appreciate this and have heard that many of the administrators and teachers have also voluntarily donated money to AEF and that teachers are constantly buying classroom supplies out of their own pocket. Bravo for helping the cause.

Just a brief comment on your comment. Our approach has been, and will continue to be to work this out "together." Regardless of our need to negotiate with individual bargaining units, I am exceptionally pleased with how well our collaborative approach to solving the budget crisis has been. I will have a detailed update for our community (staff and families) here in the BLOG in the near future.

I've heard that the layoff number has been reduced to approx 10 FTE. This is wonderful news and the efforts of those involved should be applauded.

However, what measures are being taken to continue the efforts in order to save ALL teachers jobs.

Could you clarify what level the reserves are being brought down to, if at all (I'm sure it's in the blog somewhere, but that's a lot to read through for one short answer).

If it's not going down to the minimum required, could you explain why since this is the rainy day we save for in the first place?

Could you argue against tapping reserves BEFORE cutting necessary programs and certainly well before cutting teachers and raising class sizes?

Shouldn't cutting teachers be the LAST resort as opposed to using reserves being the last resort (since this is precisely what the reserves are in place for)?

I don't mind helping the school district in this difficult time with money donation. But will the school in return provide better services/communication to the students and parents? I tried several emails to contact one of the high school teacher in regard to my kid's learning progress/behavior in class, no response from the teacher at all. Please tell me, why should I help out the school while the school is not help us?

I am browsing through this site and read that
AUSD will get only 4% of next year's budget from the federal government. That seems very low. Does that include title one money? Does that include stimulus money? I have heard of schools getting so much in government funds. Why isn't federal money divided more equally among districts? It's heartbreaking to know that my son will be attending school during such difficult financial cuts in education.

Weekly Update - Budget Reserves

The purpose of this posting is to explain budget reserves (or projected ending fund balances), what the goals are related to these balances, and how this affects staff reductions (Recently there has been a discussion in the BLOG and elsewhere that reversing the order within which we use our reserves over the next three years, to address the budget shortfall, could enable us not to layoff any staff).

Once again I have to apologize. I wish this was simple, but it's not. I will do my best to keep my explanations concise and it's a challenge, not only because the underlying assumptions and structures of the budget are complicated, but also because my understanding of these topics may not be as in depth as they need to be.

Budget Reserves:

Let's start with a reminder that the state requires us to maintain a 3 percent reserve for "economic uncertainties." For Arcadia Unified (AUSD) this is about 3 million dollars. This requirement is an important component to think about. What it tells us is that at any given moment the state believes the local school district should have a "savings account" of at least 3 percent to carry us through times of uncertainty such as large declines in enrollment, reductions to state and federal funding, and other unforeseen events. Additionally there is the issue of cash flow. Obviously, like any business, we have expenses that must be met through paying out money. The biggest of these expenses is for our staffing which equates to payroll. In any given month, our payroll expenses equal about 5.5 percent of our budget, or just about 5 million dollars. If for whatever reason, the state did not send us our allocations, the district needs to have a reserve of about 5.5 percent to make one month of payroll. The point here is that we (the school district administration and the Board of Education) do not feel a 3 percent reserve is sufficient to handle the variety of uncertainties described above.

The second thing to talk about is that the budget changes daily. At best, it is an estimate of how much money we have "saved" or that we carry-over from year to year, how much we believe we will receive in revenue in a given year, and what our projected expenses will be. Each year, all of these estimations occur through the budget planning and reporting cycles that are represented by the interim and budget development reports that are brought to the Board of Education for information and for formal approvals (prior to submitting, as required, a three year balanced budget to the Los Angeles County Office of Education before June 30th each year). As one looks at the "budget" at these different points in time, the computations of what the district's reserve are change.

Keeping in mind that we will have about 3 million dollars less in revenues because of cuts at the state level (general fund and categorical programs) and some levels of increased expenditures as we plan for the current budget cycle (2009-10, 2010-11, and 2011-12: the three years that must be submitted as a balanced budget to the county by June 30, 2009) the following chart represents our estimates for expenditures and ending fund balances (it takes into account those budget reductions we currently have shared with the Board of Education):

	2009/10 Estimate	2010/11 Estimate	2011/2012 Estimate
Expenditures	$89,359,953.00	$85,311,098.00	$84,558,160.00
Unrestricted Ending Fund Balance	$9,099,396.00	$6,588,553.00	$4,477,893.00
Reserve Percent	10.18%	7.72%	5.30%

Goals:

As you can see, our current assumptions about balancing the budget (expenditure reductions, staff layoff - reducing positions, use of categorical funds, deficit spending (use of reserves), and fund raising - e.g. AEF and other donations) result in a projected reserve of 5.3% at the end of 2011-2012 (and all of this based on no additional cuts, that is not knowing the results of the May 19th special election and not knowing what additional revenues we may receive from the Federal Stimulus funding.

Because we are not comfortable that a 5.3 percent reserve is sufficient, we have proposed a total package of budget reductions which would allow us to maintain a higher reserve at the end of 2011-2012 (6.5%). Regardless, our goals will be to rebuild reserves back up to the 10 to 11 percent levels as the economy and our revenues improve.

Relation to Staffing Reductions:

Our budget assumptions do include a reduction in the number of teachers, counselors, administrators, and classified staff. These reductions are achieved through layoff procedures. It has been suggested that layoffs could be avoided if we utilized more of our reserves in 2009-2010, and less in the later years. Let's examine this proposal. To do this we need to make a few assumptions:

1. We will only look at teaching positions


2. Each position will be estimated at an expense of $70,000 per year


3. For three year budget planning purposes a reduction in one teacher saves the district about $210,000 over the three year period


4. The district is currently projecting a reduction of a total of 27.1 teaching positions (this is a combination of budget reductions and resulting from a decline in our enrollment)

Utilizing the data displayed in the chart above, here is what the numbers look like if we do not reduce any teaching positions:

	Estimate 2009/10	Estimate 2010/11	Estimate 2011/2012
Expenditures	$91,249,953.00	$87,201,098.00	$86,448,160.00
Unrestricted Ending Fund Balance	$7,209,396.00	$4,698,553.00	$2,587,893.00
Reserve Percent	7.90%	5.39%	2.99%

Clearly, we can, in 2009-2010, and in 2010-2011, maintain a legal level of reserves (3%) without the reductions. The problem becomes evident in 2011-2012. It may therefore appear that we could have "postponed" the layoffs into future years and still balance the budget. Perhaps we could hope for sufficient retirements or resignations, or provide incentives that would cause enough people to retire so that we could reduce positions without laying off any teachers. While this scenario is possible, LA County requires that we submit the three year budget with our Board of Education approving a series of reductions now that make the budget balance three years out (maintain at least a 3% reserve). We do not know of a way to do this in subsequent years by projecting reductions in staffing based on unknown retirements or resignations. Therefore we must make these reductions in the current year (to begin in 2009-2010). And, our goal is to make sufficient reductions to have between a 5.5 and 6.5 percent reserve at the end of 2012.

Of course all of this, for teachers and other certificated staff, is exacerbated by the required deadlines for notification. To be clear here, it is possible that once we know how much of the Federal Stimulus money we will receive, and if LA County gives us permission to utilize these amounts in our 2009-2010 budget assumptions, we could save positions. Unfortunately, two things may prevent us from doing this before the May 15th notification deadline (the time by which we need to notify certificated staff previously noticed, whether or not they will be reemployed in the following school-year): 1) not having clear direction about the federal money in time, and 2) the uncertainty of future reductions by the state resulting from the May 19th special election (as well as continued concerns about tax revenues resulting from the recession).

And in conclusion:

The length of this posting highlights the complexity of this situation. Regardless, I hope this helps to explain our thinking and actions related to the use of budget reserves, how the new Federal money may affect our decisions, and why we've taken action for staffing reductions and layoffs.

The next few weeks will bring additional changes. As we have attempted to do in the past, we will update you here about these changes and how they affect the Arcadia School District. We look forward to your questions and comments.

Having heard this morning that AUSD is now authorized to spend the Federal Stimulus money (or at least to assume such funding in its budgeting process), I am curious how this impacts the lay-off process and prospects.

A quick note here to let you know that I will be responding to the new posts, but my schedule is such that it will take me a while to craft and post my responses.

Thanks - more to follow soon.

With the stimulus package now being available to help with teacher lay offs, is it possible to restore the 20 to 1 ratio in the third grade next year from the proposed 24? With this increase, it is obvious that for every five classes you lose a teacher and our kids suffer. Research continues to prove that lower class size in the early grades (k-3)helps to build strong skills and foundations in the early learner thus lessening the chance of a child falling behind and increasing future success in school. I hear that the reason this was done was to make it "fair" to high school teachers losing their jobs and even out the lay-offs across all grade levels, not for the benefit of Arcadia students. Now this may not be an issue anymore and you will save lost $$ in penalties.

In this posting I will be responding to responses to my May 4th update as well as updating you on the current budget -- layoff situation.

Follow-up on Use of Reserves and Reduction of Staff:

In my explanation above, where I compared what happens to our three year budget if we take teacher layoffs out of the expenditure projections, questions remain about the conclusions I reached. Some folks concluded, from my explanation, that we could avoid layoffs since in the first year of the projections, there are sufficient funds remaining (a 7.9% reserve after we put the teacher expense back into the projections) to meet our goal of 5.5 to 6.5 percent reserves. The problem here is twofold: 1) you have to look at the reserve number at the end of the third year (2011-2012) which is 2.99 percent. Even though this is close to the required 3 percent reserve for economic uncertainty, it doesn't meet our goal of maintaining a 5.5 to 6.5 percent total reserve (which we believe is necessary given all of the fiscal uncertainty we've been experiencing and unfortunately expect to continue), 2) The County Office of Education, will not let us project staffing reductions into future years for budgeting purposes, unless those positions have actually been eliminated. Saying this a little differently, we can't simply plan to postpone staffing reductions to 2010-2011, at least for budget submission and approval (by the county) purposes.

American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization Fund (SFSF):

We received word today from State Superintendent Jack O'Connell that the California Department of Education (CDE) is releasing the preliminary allocations of the SFSF tomorrow. This is potentially good news. I'm qualifying the good news as "potentially" because these figures are "preliminary." The County Office of Education has told us that we may include these resources in our submitted 2009-2010 budget and three year projections only when the amounts are "official." Nonetheless, this is the first step down that road. So, what do we think this means for us:

While we don't know exactly how much money we will receive, and these resources will be one time allocations, we believe that the amounts may be sufficient (spreading their use out over two or three years) to reduce or eliminate most if not all staffing reductions. Two very big cautions here:

1) While these one-time resources may enable us to save positions for next year, the current condition of the state's economy and the affect of the May 19 special election ballot measures potentially not passing may result in very large reductions to our school district. As indicated previously, we are still getting information that this cut may be as high as $600 per student which would equate to about $6,000,000 to Arcadia Unified. A cut of this magnitude would be devastating and would result in staffing reductions (layoffs) next year for the 2010-2011 school year. And, as was considered when the current cuts were being proposed by the state to school districts earlier this year, it is conceivable that we would have to implement midyear reductions (take cuts which affect staff during the 2009-2010 school year) in order to balance our budget (remember the state can decide with a 2/3 vote of the legislature to cut our budgets in the middle of a year even though theses budgets had been previously adopted and approved). While some may believe these are scare tactics designed to convince the electorate to vote for the ballot measures, an article in the Los Angeles Times today (Friday, May 08, 2009) reported that the state's cash flow is so bad it could run out of money by July.

2) We will not be able to rescind all layoff notices to certificated staff (including teachers) by the May 14th deadline. Unfortunately, this means that about 30 of our staff will receive a letter saying they do not have a position in Arcadia Unified for next year. Again, until we have official notification that we will receive the SFSF we cannot put the funds into our budgets. Given the information we have, we do believe we will receive the money and as soon as it is official we will begin the process of "hiring back" most if not all of the teachers and other certificated staff noticed that they would not be rehired for 2009-2010.

Other Impacts Related to the SFSF

1) In addition to restoring staff positions, it is our intention to restore the third grade class size reduction program back to 20:1 (again, upon official notification that we will receive the SFSF money).

2) We will review our tentative and signed agreements with the three bargaining unit groups to reconsider agreements reached prior to the release of information about the SFSF (we've already agreed with the Arcadia Teachers Association and our Classified Employee group to delay a vote on tentative agreements until later in May. The approved agreement with APSSA will be revisited).


Once again things are changing rapidly and the news and information we receive is both optimistic and worrisome. We will continue to keep you updated here in the BLOG and look forward to your comments, questions, and reflections.

While I appreciate the general sense of optimism related to the stimulus money, I'm not clear on the numbers. According to the CDE website, Arcadia is entitled to approximately 2.6 million dollars of stimulus money. According to your figures of $210,000 per teacher for the three year period, AUSD would need close to 5.7 million dollars to keep all 27.1 teachers currently facing lay-off procedures. Why, then, do you think you'll be able to re-hire most of us and keep third grade class sizes at 20:1? I really, really, really want to share in your optimistic outlook - what am I missing?

After we take in to account retiring and resigning teachers we believe the money will be enough, used over three years, to offset any additional reductions in positions needed to balance the budget, including those that would come from increasing grade three to 24:1 (therefore, we would be able to "rehire" all of the staff noticed that they would not have a position). But it is a good point and one worth underscoring: We are reducing positions because of declining enrollment and budget reductions. We, for now, are going to be able to accommodate those reductions through attrition (the retiring and resigning staff). And, the fact that we will be able to do this now with one time money does mean, that three years out, we are assuming that things will have improved sufficiently that we will be able to maintain all of these positions. It is also true that if we can't, each year additional staff retire and resign and that may help us balance the budget without layoffs -- but there are no guarantees of that. Lastly, none of this takes in to account what may happen next year if the ballot measures fail and the state budget has larger than expected deficits. Even with all of this "good news" we may be facing additional staff reductions and layoffs in the future resulting from the ongoing state budget crisis. By the way, the approximately 2.6 million dollars of SFSF money is the general fund part of this program. We should also see about (we think) a million dollars coming to offset reductions in our categorical programs which were cut. Obviously, this will help as well. Thank you for your question!

We learned late Monday (May 11th) that Governor Arnold Schwarzenegger intends to release a summary of two alternatives to the May revise this Thursday, May 14, 2009. The Governor's office had previously announced that the May revise would be released in late May or early June. This decision may be related to the May 19th special election and how its outcome might affect the budget. What appears to have changed is that for the first time in more than 70 years, collections of income taxes are expected to be lower this year than last year. This along with projections that the ballot measures are likely to fail has the state estimating that the budget shortfall for 2009-2010 will reach $21.3 billion dollars.

A couple of things to be aware of:

1) Typically the May revise is the mechanism by which the Governor makes adjustments to the state budget proposal he put forward in January and this revise occurs prior to the legislature taking action to approve the state's budget.

2) This year is different -- the budget (again, 2009-2010) was approved in the deal crafted with legislators in February and signed by the Governor in March. It is unclear how this year's May revise (regardless of when it's released) would work to modify the budget and therefore affect the assumptions we are using to develop, approve, and submit our school district budget.

3) We don't yet know what impact the possible announcement (by the Governor) of additional reductions to K-12 schools would mean. But these reductions, and the amounts that are being discussed (possibly as much if not more than $600 per student, which would equal about $6,000,000 for Arcadia schools), could have a real impact on our ability to utilize the Federal Stabilization money to hire back released employees.

The actual affect of cuts of this magnitude, on top of $3,000,000 in reductions already taken could only be addressed through additional reductions to staff. We are very concerned about this and the continued uncertainty. We are pressing the Los Angeles County Office of Education to give us guidance as to how we would need to change our budget assumptions as soon as possible following the Governor's May 14th report so that we can plan accordingly.

As always, we will keep you posted.

Does this mean that the teachers that received the final layoff notice should no longer be feeling optimistic with the stimulus money news from last week?

We will know more after the Governor's announcements today. But in general, yes, we are all feeling less optimistic about our ability to hire most if not all of the noticed teachers and other certificated staff back. The budget situation is frustrating for all of us. Regardless, today's announcement and the May Budget Revise will be the beginning of figuring out exactly what we will have to do to balance our school district budget if we have to take additional reductions. The severity of these cuts will affect how many positions are eliminated. For now, we will just have to wait and see.

I hope that if the district is required to reduce the school year, it is the staff development days that are reduced before classroom days are considered. I may be wrong, but I don't think teachers need more than one paid prep day to prepare their classroom before students come back from summer break. Students will be better served with more classroom days and hours.

I've been reading several news papers and online reports and many of them mention a provision that allows schools to layoff even more teachers in August, even if they have not yet been noticed. Is this something Arcadia is considering?

Just a few weeks ago the word was that all of the teachers could be saved, etc. and now "suddenly" we're back to square one? I find it almost unbelievable that there was no contingency plan in place when the Props had been forecasted to fail for over a month now, AND that the news was saying in March that the state was already running a deficit from the previously agreed-upon budget, which would obviously affect the May revise. Isn't it someone's job to pay attention to this news and apply it to the plans at AUSD? It's incredibly frustrating as a member of the community - I can't imagine how our pink-slipped teachers are feeling right now.

The District and the teachers unions need to start making concrete concessions and plans NOW. Obviously, it's incredibly unfair what the state has done to the District, but it is irresponsible that there wasn't a back-up plan in place for what has been coming down the pipeline for a long time. For the good of the kids and your peers, teachers and administrators, make some sacrifices.

Let me begin this brief update by acknowledging that we've all been on the equivalent of an emotional roller coaster ride. And I don't like it. In some ways I feel responsible for creating unrealistic or false expectations recently about our budget situation. I apologize if I've contributed to the ambiguity we've been living with.

Regardless, I've been waiting for the May 19th elections to update you here. Unfortunately as we now know, the ballot measures of primary interest to us (1A, 1B, and 1C) did not pass. We also know what the Governor told us during his "May Budget Revise" announcement of May 14th. Unfortunately, none of the news is good. Because of reduced tax revenues and the ballot measures failing, AUSD needs to plan for an additional $4,550,000 reduction to our budget beginning with the 2009-2010 school year (and this is an ongoing reduction). Combined with the reductions we received as a result of the budget adopted in March, 2009 (about $3,000,000), the total cut to our school district is about $7,550,000 (again -- in ongoing cuts). This number is staggering!

On a slightly more optimistic note:

1) We expect to receive approximately $3,000,000 in one-time federal stabilization money (the release of the money is still in the preliminary stage but we do expect it to be made "official" shortly).

2) We will increase our revenues through already implemented budget reductions, cost saving efforts, and slightly better than expected average daily attendance figures for 2008-2009 (our decline in enrollment is not as bad as we projected).

What we don't know at this moment is what all of this means; for staff who have been laid off, our ongoing negotiations with our bargaining units, and what additional reductions and adjustments to the budget will need to be made.

We have scheduled meetings with all of our associations (ATA, CSEA, and APSSA) to discuss what next steps need to be taken. We will continue to work collaboratively to address these challenges. And, we will keep you informed.

Thank you for your interest and continued support.

now realistically what is the likelihood that those that got fired will be rehired before September?

Despite these difficult times, I feel so blessed that my daughters belong to the AUSD. Ms. Blackstock and our teachers have all been excellent. The AUSD admin led by Dr. Shawn has been doing a wonderful task in a nearly impossible environment. I just wanted to give my thanks to all their hard work and dedication despite all the uncertainty in our dysfunctional state capital. If those at the state level showed even a fraction of AUSD's hard work and dedication, we'd all be better off.

In my post of April 16, I talked about how almost 90% of our district funding passes through the hands of the legislature in Sacramento; about how a huge amount of state funding comes from relatively few wealthy individuals, leading to severe revenue shortages in tough times; and about how the extravagant public employee pension plans granted by the governor and legislature in the late 90's have led to our impending teacher layoffs.

These are but a few of the problems created by Sacramento. Two of the biggest reasons Sacramento does not work for us are (1) heavily gerrymandered state congressional districts, and (2) the voter initiative process.

District gerrymandering has led to an extremely partisan legislature. You don't have to try hard to find an editorial or columnist discussing this so I won't go into depth. The basic point is that the state legislature creates "safe" Democratic and Republican districts. The seats are won in the party primaries in which only party members can vote, guaranteeing that only the most liberal Democrats and only the most conservative Republicans represent the districts. I guarantee you that most districts are much more moderate than their representatives. Proposition 11, the redistricting initiative passed by the voters last year, should start to improve this situation but we probably won't feel that for a few to several years. In the meantime, Arcadia's school budget suffers from the consequences of this environment, as the partisanship leads to bad decisions and inaction at critical times.

An example of this partisanship is the response to the March budget compromise in the legislature. A few brave Republicans voted for the compromise, knowing that neither a no-cuts nor a no-taxes solution was tenable. The response to their votes: recall efforts. Many Democrats, meanwhile, were crying foul saying they were held "hostage" by the Republicans, that the cuts shouldn't be so severe. (One Democrat was literally crying in front of the cameras about the cuts). Arcadia representatives Bob Huff and Anthony Adams (both Republicans) have been served recall notices because of their stands on the budget issues. There is even a "Recall Adams" website. The Adams recall was initiated by people living not in his district but in heavily conservative Orange County. Anthony Portantino, Arcadia's other assemblyman, hasn't been too vocal about the budget other than an effort to reduce the compensation of some state workers.

The voter initiative process is another major issue. Again, you can find plenty of columnists and editorials about this. Suffice it to say that multiple, conflicting initiatives passed over the years have tied the hands of the legislature and limited their ability to respond to budget crises. Initiatives these days are not usually based on groundswells of public opinion (as intended by the originators of the process decades ago) but rather on wealthy individuals or interest groups with an agenda and a misleading stream of advertising. Often these initiatives result in increased spending or constitutional limits on spending. People in Redding, Bakersfield, and San Francisco vote based on the advertising, the state Constitution is amended if it passes, and Arcadia's school budget is affected by the change in revenue distribution. This issue is much more difficult to fix than the gerrymandered districts because it would require a major revision to the Constitution. (California History Trivia: Hugo Reid was a participant in the 1849 California Constitutional Convention and a signer of the document).

Many in the state are now calling for a new Constitutional Convention, most prominently the Bay Area Council. Although there is the danger of this process being hijacked by the same people that now seem to control Sacramento (unions, gaming interests, etc.) it seems to be the only way we can accomplish real meaningful reform. It is at least worth considering, as Sacramento is completely broken.

The Economist recently published an excellent article on these issues [The Ungovernable State, The Economist, May 14, 2009]. It is well worth reading. You can find it online at http://www.economist.com/world/unitedstates/displaystory.cfm?story_id=13649050&CFID=60513995&CFTOKEN=69980050.

Please, read about the issues and write your legislators. Discuss them with your friends and colleagues. We have to fix this broken system that is hurting our kids and our community.

The District now faces a total of $9,550,000 in annual cuts. As I understand it, the total revenue reduction of $9,550,000 can be separated into two parts: $5,000,000 representing the initial reduction which was included in the adopted state budget, and $4,550,000 of expected additional cuts. Had the total revenue cuts been known a year ago, the district would have had to eliminate 100% of one or more of the 2008-2009 budget expenditure categories, and the shortfall still would not have been closed. I am not advocating that entire budget categories be eliminated, nor is it even possible or desirable. Schools cannot run without support services, and employee benefits (including such things as matching withholds) are required by law.

The only budget category that could have fully absorbed the total $9.55 million in cuts is teachers' salaries and related benefits, though I also do not advocate this approach. Using the average salary and benefits cost in the blog ($70,000), closing the $9.55 million gap solely by reducing teaching staff would require the elimination of about 136 teaching positions. The average elementary and middle school teaching staff has about 32 teachers, and the high school has about 190 teachers. Therefore, if the total budget shortfall were closed using teachers salaries, this would be the equivalent of eliminating the entire teaching staff of four elementary or middle schools (we only have three middle schools), or eliminating most of the high school teaching staff. While these scenarios are clearly impossible, the reason for creating the scenarios is to highlight the financial crisis facing the district, and the monumental challenge of closing the gap.

Though I am not sure if it is finalized, I believe the district has closed the initial $5 million shortfall by cutting costs, utilizing reserves, and eliminating about 40 teaching positions. Assuming the eliminated teaching positions closed $2,100,000 ($70,000 X 40) of the $5 million gap, teacher salaries and benefits as a budget category absorbed a disproportionately lower percentage of the total cuts than the rest of the combined budget categories. This was done by cutting costs, using substantial reserves over three years, and potentially eliminating one paid teacher work day.

Now that the district must absorb another $4.55 million in revenue cuts (and possibly more, based on the latest out of Sacramento), I am not so sure that teacher salaries can continue to absorb a disproportionately lower percentage of the total cuts than the rest of the combined budget categories. It is also essential that the district maintain reasonable reserves. I am confident that the district will again go through its budget and make even more painful cuts, but without further reductions to the teacher salary category, I do not see how the $4.55 million budget gap can be closed.

Obviously, reducing teacher salary and benefits costs can be accomplished by reducing the number of teachers, reducing teacher compensation, or both. Bearing in mind that we have already eliminated enough positions to close the equivalent of more than one average elementary or middle school, I think that a compensation reduction should be considered.

I realize the hardship this will cause families, but if this is not done, the quality of an Arcadia education could be severely damaged (for example, increasingly larger class sizes and/or the reduction of supporting services). After all, how many more "equivalent" schools are we willing to eliminate (through teacher layoffs) in order to close the budget shortfall without reducing teacher compensation?

What if five years ago someone proposed increasing the compensation of teachers, administrators, classified staff, etc. by cutting dozens of teachers (and other staff) and increasing class sizes? I am certain that the proposal would have been rejected by all stakeholders (including teachers). Yet, by keeping the current compensation structure in place, that is now what could effectively happen. Should all stakeholders be forced into this position because some employees may not be willing to do what is necessary? Revenues have been rolled back several years and compensations may need to follow suit. I know there are some teachers and support staff who would be willing to take a pay reduction to maintain the quality of an Arcadia education and, yes, to preserve jobs (teachers, administrators, classified, etc.).

Using the 2008-2009 budget information on the blog, salaries and benefits are approximately $51.6 million. Subtracting the $2.1 million saved through announced compensation cuts leaves estimated new compensation-related costs of $49.5 million. Thus, then the entire $4.55 million additional shortfall could be eliminated with a maximum 9.2% across the board cut. Hopefully, this percentage cut could be reduced as the district finds additional non-compensation areas to trim costs.

I realize that the district is under tremendous pressure to balance a new three-year budget by June 30, 2008. I also realize that the district and unions must work together and bargain in good faith. However if any party takes the position that compensation is not negotiable, that is neither good faith bargaining nor reasonable given the $4.55 million in cuts that must be made.

Dr. Shawn,

As part of the upcoming state budget process, is there a lobbying effort on behalf of school districts to relax the three year budget requirement?

Are school districts seeking to eliminate restrictions on the use of categorical funds?

It seems that maximum flexibility on the use of monies by districts is needed to reduce the impact of the upcoming cuts.

Thank you.

Consider the huge mass that you guys have created, I will never enroll my students in your S.D. Never again! Considered all the mistreatment of the students and parents in the past. Now you guys are begging money from us and lay off many nice and hard working teachers? ASD never again!!

School's cannot function without classified employees! Our kids need cafeteria services, library clerks, computer lab technicians, school health aides, secretaries, office assistants, bus drivers and many other classified employees to have a safe and successful school experience. Please take this into consideration when making these tough decisions!

Families have donated, district administrators have taken a pay freeze, what about the teachers? Yes, I know teachers put in many hours during the weekends and after school (especially in Arcadia) without any additional incentives. Teachers in Arcadia teach from the heart. A pay cut might be a lot to ask for, but we all need to lend a hand during difficult times like today. As one person stated above, a pay cut is definitely far less demoralizing than being laid off. Yes, these are hard times for everyone. But teachers definitely can do something to help those that might possibly lose their jobs. Please show that Arcadia DOES make a difference...not just for students, but for everyone who is a part of this great community.

Where do the temporary teachers fit into all of these discussions?

Friday Update

I want to acknowledge the recent posts to the BLOG. These are challenging times and clearly there are many opinions about what needs to be done to balance the school district's budget. The purpose of the current effort to negotiate a revision to the AUSD teachers' salary schedule for 2009-2010 is to mitigate additional cuts to K-12 education (and specifically to AUSD) announced on May 14, 2009 by Governor Schwarzenegger. Our intention is to find a way to hire back as many of the probationary and permanent teachers as possible who were given official lay off notices on May 14, 2009. An additional intention is to avoid raising class sizes by further reducing staffing allocations to our schools (which we would need to do to balance the budget). To be clear, temporary teachers are not included in this calculus. However, it is also possible that some temporary teacher could be rehired if we are able to refill positions otherwise reduced because of the additional budget cuts.

I have been reticent to post anything to the BLOG recently because there are many opinions about a new proposal for a tentative agreement between the school district and the Arcadia Teachers Association (ATA). I respect everyone's has a right to hold and express their opinions about this topic. Regardless of the outcome of our negotiations, in my opinion, ATA leadership has bargained in good faith, been true to our goal of interest-based bargaining, worked tirelessly to surface assumptions about the school district budget, and worked to answer every question posed by ATA members. I want to thank every member of the ATA bargaining team and make sure they know how much I appreciate their leadership. I also want to acknowledge, the members of our Classified (CSEA), and Student Support Services (APSSA) bargaining teams. During negotiations this year, everyone has done an incredible job of representing their constituents while holding true to our goal of working together to protect the students and programs of the school district. We will continue to do so.

Now to the state's budget:

We were expecting an update from the Governor's office yesterday (May 28, 2009). Nothing new was reported. On Tuesday, the Governor did release specific proposals to cover $5.6 billion of new spending reductions (this to backfill borrowing he had proposed in his May revision). No additional cuts to K-14 education were included. The largest of these cuts include:

* Eliminate California Work Opportunity and Responsibility to Kids
Program-- $1.309 billion in 2009-10 and $1.765 billion in savings in
2010-11. This option would leave $4 billion in federal funds untapped.

* Eliminate Healthy Families Program--$247.8 million in 2009-10 and $322.4
million in 2010-11 savings by eliminating remaining funding for the program.

* State Worker Furloughs-- $60 million in 2008-09 and $150 million in
2010-11 savings to be achieved through proposed labor agreements with
Service Employees International Union.

* Reduce UC and CSU Budgets--$415 million in 2008-09, $335 million in 2009-10
and 2010-11 that further reduces the Federal State Fiscal Stabilization
Fund maintenance of effort level to higher education.

* Phase out of Calgrants--$173 million in 2009-10 and $450 million in 2010-11
savings by eliminating new awards for the High School Entitlement and
Community College Transfer Entitlement programs and the CalGrant C program. In addition, the Governor proposes a "Complete Decoupling of Cal Grant
Renewals" that achieves $28 million in 2009-10 and 20010-11 by eliminating the increase in award amounts for renewals associated with UC and CSU fee increases.

* Eliminate Funding for Hastings College of Law--$10.3 million in 2009-10 and $10.3 million in 2010-11 in savings by reducing to the minimum level prescribed in statute.

* Eliminate General Fund funding for State Parks--$70 million in 2009-10 and $143 million in 20010-11 savings by eliminating all General Fund support.

* Medi-Cal Savings-- $34.4 million in 2009-10 and $57.8 million in 2010-11 in savings by eliminating certain State Services to Undocumented non-emergency services (breast and cervical cancer treatment and postpartum care, and excluding prenatal and long term care), Institutions for Mental Disease ancillary services payments, dialysis, non-digestive nutrition, and breast and cervical cancer treatment for women over 65, and men.

* Assume Additional Savings from Federal Medi-Cal Flexibility--$250 million in 2009-10 and $500 million in 2010-11 savings by increasing " relief" from federal requirements previously proposed.

* Reduces General Fund Spending for AIDS Drug Assistance Program (ADAP) and for other Office of AIDS program--$55.5 million in 2009-10 and $58.9 million in savings.

* Reduce Mental Health Managed Care Services and Early and Periodic
Screening, Diagnosis, and Treatment Services (EPSDT) -- $92 million in
2009-10 and 2010-11 savings by eliminating GF support for new county programs in 2007-08 and 2008-09.

* Eliminate State Funding for Community Care Licensing--$19.5 million in 2009-10 and $39 million in savings for 2010-11.

* 10% Reduction in GF Support for Courts--$181.6 million in 2009-10 and $190.8 million in 2010-11 savings.

* Additional Reduction to Prison Population by commuting sentences of nonviolent, non-serious, non-sex offenders one year early--$120.5 million in 2009-10 savings.

* Reduce Corrections Contract Expenditures, Reduce Rehabilitation Program and Make Other Reductions to CDCR--$788.5 million in 2009-10 and $914.4 million in 0010-11 savings.

* Elimination of General Fund Maternal, Child, and Adolescent Health
Funding -- $10.2 million in 2009-10 and $10.2 million in 2010-11 savings.

These proposals will generate lobbying on behalf of the various groups and organizations affected. As indicated above, the Governor did not propose additional reductions to K-12 education. However, we don't know what will happen if the lobbying efforts are successful in affecting the opinions of legislators as they work to balance the budget.

Lastly, on a positive note, the California Department of Education has released to Counties this year's allocation of the Federal Stabilization money which means we now can "officially" include these funds ($2,583,430 in one-time money). We included these resources in the revised budget assumptions that were presented to the Board of Education on Tuesday, May 26, 2009.

I would like to second Dr. Shawn's praise and thanks to the ATA Bargaining Team and Leadership. I know that they have worked tirelessly to bring the best possible scenarios to Arcadia Teachers. I also want to extend my support and thanks to Dr. Shawn and his team of support staff. I feel confident that everything is being done to make Arcadia schools the best schools in the state, despite the horrendous state of our economy. Thank you!

what is the argument against the percentage pay cut? It seems to me that is the fair thing to do...

Will our summer school programs be impacted by cuts?

Dr. Shawn-

1) What is the exact number of teaching positions that our district may lose next year?

2) If the current tentative agreement is passed by ATA, can all those jobs be saved?

Thank you for providing us a safe place to post questions/comments.

You said in the above post the following....
Again, to be very clear on this point, this does not include those teachers who were employed under temporary contracts.

Is anyone fighting for these temporary teachers? How many of them are there?

What would need to be done to save these teachers, so we can truly say that we saved EVERY teachers job.

I am confused with the amount job loss now. So the 26.1 jobs doesn't include these "temporary" teachers what is the total count of job loss if you were to include these teachers? What makes a teacher temporary instead of probationary?

so are you saying even with the best case scenario there will still be roughly 13 teachers laid off. Does this 13 include these temporary teachers?

The purpose of this posting is to explain what it means to be a temporary teacher. State law allows school districts to offer temporary contracts to teachers who hold a position for another teacher who is on a leave of absence (these are "permanent" teachers) or for a teacher that is filling a position paid for from categorical (special) funding. These conditions allow us to make sure that jobs of teachers who are either on approved leave (for example a maternity leave) or who are filling a new position funded with categorical money are protected. To say this differently, the teacher on leave or who is filling a categorically funded position has a right to come back to their original position. To save these positions, we hire "temporary teachers."

A temporary teacher is given a "one-year" contract with a specific start and end date. They are hired knowing that their job ends at the end of the year or on the specific end date. It is true that some temporary teacher may be hired back in the next year. And it is also true that temporary teachers sometimes become probationary or permanent teachers with AUSD when openings become available.

I know that each of these temporary teachers is a valuable individual who have provided a valuable service to the school district. Nonetheless, they do not get counted as part of the "net reductions" resulting from budget cuts or declining enrollment. They are not laid off from their position; their contract simply comes to an end. Again, in any given year, we and they know that their contract expires at a specific time, usually the end of the school year.

What is the highest number of students that can be in a high school class?

How did the AEF money drive go? Was it able to save anyone's job?

Is ANYONE at all concerned about the classified people? I understand that the main priority is to keep teachers so that we have someone to teach these kids, but what are the teachers going to do when there is no one around to order supplies, handle health issues, send in money for field trips, deliver supplies, clean the school, make the food, answer the phones, call the parents, send out the report cards, or any of 10,000 other things that we as classified staff do on a daily basis? Is this district going to run on the strength of the teachers alone? Something needs to be done to save our jobs as well before we have 2nd graders making copies and 5th graders taking turns being health aide. I do not see how cutting classified positions can help this situation, especially since many of us already do not receive benefits because our hours were cut back. We already have to pay for our own health insurance. How are we going to do that without a job? Why not cut benefits back and save jobs?

A Word About Classified Staff:

We are very concerned for and appreciative of our classified staff members. Yes - the classified employees are represented by an association like the teachers. Yes - we are bargaining with them like the teachers. The reason you've been hearing so much about teachers and not classified staff is that the layoff procedures for certificated staff (teachers) are set in law with specific dates that must be followed (e.g. March 15th, May 15th, etc.). This is not the case for classified employees. Classified employees receive a 45 day notice if they are to be laid off.

The approach we've taken with our negotiations with the various bargaining units has been to work together. That is, the teachers, classified, pupil support, confidential supervisors, and management, while in different groups, have worked collaboratively to reach agreements that protect all types of positions and attempt to minimize the impact of these horrific budget cuts.

Our goal has been and will continue to be to not layoff staff unless absolutely necessary. Unfortunately, some level of layoffs is needed to balance the budget.

I will have additional information about classified layoffs and reductions to staff in the near future.

I am so pleased to see how what a great job our Surpeintendent, staff, teachers, and parents at keeping the lines of communication open. This is a wonderful blog. You are all providing wonderful information and concerns. I wish all Districts would take this approach.

If either of the tentative agreements does pass and you'll be able to hire back all of the teachers, what is your time frame on hiring them back? Will it be soon, or not until school is about to start?

Wow! ASD is a mess!!!!
Who said it's a good district?
Parents invest million of dollars in real estate in Arcadia for what? Fot this? For a school district which clearly managed by deceitful idiots!!!
Shame on you!!!!

Boy, people must be very interested to be up so late.
I heard the vote from the teachers was yes and they will all take a % cut in pay, administrators too which means hey will have a bigger cut if they make more money.Some will give up at least $1500.00. Those same people already donated to AEF. Thank you ! Okay community, lets pitch in too ! We could try and save the health aides so our kids don't have to stand in the office and wait for the secretary to finish helping another parent or child while the sick one throws up in the hallway. Next year they only can be sick for three hours a day or else no nurse or health aide will be there to care for them (just elementary even though there are way less people in the office to help...no vice principal or full time counselor...no P.E. teachers or teachers on conference periods..they don't get that in elementary school). Heaven forbid if they actually are really hurt. 911 is a bit over the top for a bloody knee, broken arm or a hard hit in the head but who is going to do this if it is before or after the three hrs the health office is staffed? Asthma !!? P.E. is all day ! Sounds like a law suit to me ...way more expensive than a three hour aide !

In difficult times like these, not everyone is going to be happy - hard choices have to be made. But the fact that the vote for a pay cut to save jobs passed is a further testament that AUSD staff, administrators, teachers all have the best interests of the children as the top priority, and I applaud you.

As people with interests in AUSD, we must keep this priority above all else. A private company never has as it's mission statement, "to make money", or "to increase market share". A company's values are always "to serve the customer" or "to make great products". It's because the company knows that by serving the customer, these other things follow.

The same thing applies. By keeping in mind the best interests of the students, the district gets stronger, attendance increases, parents take a more active interest, the quality of support staff improves - a culture of quality and excellence is implemented and good things follow.

I feel for staff and teachers that are facing layoffs and parents that are worried about their kid's education. I encourage those who have concerns to help us work within the system collaboratively.

End of 2008-2009 School-Year Posting

This posting marks the end of the 2008-2009 school-year and my first year as Superintendent. It has been quite a year! I've learned a great deal from the comments that have been posted to this BLOG since its inception. Getting insight into what people are thinking about the budget, the school district, how we are handling the budget crisis, and about my leadership have been invaluable. And, I'd be less than honest if I didn't say, at times challenging. One of the most critical things that I've learned is to not take anything that is said personally. Obviously, it's not always easy to do that. But what is clear to me is that if you are personally affected by the cuts we are making, you have every right to feel angry or afraid and I am glad that this forum has provided our community (the staff and the members of the Arcadia community) a place and opportunity to express what they are feeling and thinking.

As of today the California Legislature has not yet taken action on the Governor's recommendations for closing the 24 billion dollar budget deficit. We are afraid when it comes to our budget we may not be done making adjustments -- based on what we are hearing from Sacramento, there may be future cuts. Regardless, we will bring our recommendation for the submission of a balanced budget to our Board of Education on Tuesday, June 23rd.

I am (as I mention in a response above) also very happy to share with you that the Arcadia teachers have approved an agreement for a 1.25% across the board salary reduction. This concession will allow us to hire back all probationary and permanent teachers who had been laid off. Reaching this and all of the agreements with our employee groups is a big accomplishment and something that I am very proud of. In light of horrible economic times, and equally horrible resource cuts by the state, the Arcadia Unified School District family has done everything possible to protect the programs we provide for our students.

I will conclude here by thanking once again everyone who has contributed to this BLOG. The discussion here has been an invaluable part of the process that enabled us to achieve our agreements and to protect our programs. I look forward to continuing this and additional dialogue about our wonderful school district.

I hope everyone has a great summer!

does that mean there will be no updates on here during the summer?

In response to a recent post made regarding a commercial service, thank you for taking the time to make us aware of your business. The post, however, has been removed from this blog as it is intended for non-commercial communication only. If you would like to discuss your product offerings further, please contact the AUSD business office. Thank you.

It is great that all teachers are getting their jobs back, even though you stated that classes will be smaller next year. I understand that 28 classified employees either lost their jobs or had their hours cut. Most of the classified who were laid off or hours reduced come in direct contact with the students on a daily basis. Is there no help for the classified employee? They gave up a step raise to give the district a $144,500 savings. Which jobs did that help to save? Why are only classified employees taking the hit to help the distict save money?

1) not all teachers jobs were saved...several temporary teachers are not having their contracts renewed

2)teachers/administrators took a 1.25% pay cut
so it was not only the classified teachers who took the cut

On June 21st I will be leaving on an exciting educational trip to China paid for by the College Board. I will be away until June 30th and therefore will not be posting any updates for the next two weeks.

As you know, the revisions to the state budget needed to fill an approximate $24 billion deficit have not yet been approved by the legislature. The budget conference committee has been meeting and working to make its recommendations about how to close the deficit and in response to the Governor's May 30th revisions. A two thirds majority vote of the legislature is required to revise the state budget (for the revision to be effective immediately). The legislature takes action following the recommendations of the conference committee. If approved by the legislature, the revised budget requires the signature of the Governor before being enacted. None of this has yet to occur. There is a great deal of pressure to act because it is reported that the state will run out of money some time in July. I am sure much more will have transpired by the time I return from my trip. I will update you then. Thank you all for your continued interest and participation in the BLOG.

Are any of the temporary teachers being offered positions for the 2009-2010 year, or are all of them being layed off still? Some of them are quite good.

J.Shawl said there will be absolutely no laid off. Everybody will keep their jobs. He meant everybody. All the pink slipped people will be rehired. ALL!!!! DId you hear that? all of us!!!!yes!!

Does the new state budget further impact our district? What can we expect looking forward?

No we are not reducing the school year in Arcadia this year. The state (as a result of what has been approved in the budget) has given California school districts permission to reduce the school year by five days and not jeopardize their funding by reducing required instructional minutes. Reducing the school year by five days only saves school districts (including us) money if they are able to renegotiate employee contracts to reflect fewer days. Each school district (about 1000 of them) in California has its own contracts with its employees (including teachers). This type of agreement would have to result in a reduction in salary (in the case of teachers 5/180th of an individual salary) which would save us money. The state has no authority to mandate this and conveniently does not say this when they announce they've given permission for school districts to reduce the school year. Most industrialized countries have students attend more days of school than we do in California (roughly 180 days). We are also concerned that reducing the school year by five days could affect our students' academic performance and mastery of standards. So again, no, we are not reducing the number of days students attend school in Arcadia for the 2009-2010 school year. Thank you for your question.