Answers to Questions Submitted at the Sept. 17, 2024 Budget Webinar

Q1: Are you looking into a retirement incentive?

A1: Yes, the district is exploring options, including potential retirement incentives, to address staffing levels and budget challenges. This is being considered as a way to minimize layoffs and reduce costs while retaining flexibility in staffing.

Q2: Why do we consistently grant expensive IEE evaluations instead of denying them? We seem to spend an unacceptable amount on outside IEE reports.

A2: Independent Educational Evaluations (IEEs) are a federally mandated right for families if they disagree with the district’s evaluation. Granting IEEs can sometimes be a more cost-effective solution compared to lengthy legal disputes.

Q3: Is this the same Ron Hacker who was Superintendent of Business Services at Centinela Valley Union School District when the superintendent received $910,000 to buy a home?

A3: Yes. That Superintendent's employment was terminated in 2014, and he is currently facing 12 criminal charges. Ron continued to work at Centinela Valley UHSD through 2022, helping to restore integrity to the District in the wake of the scandal. Ron continues to communicate with the Los Angeles County District Attorney and the school district to ensure that the District is made whole with regard to potential settlement agreements.

Q4: Can you please come to an agreement at tomorrow's bargaining? We're done with this!

A4: We understand the urgency, and the district is committed to working in good faith with all stakeholders. While we are striving to reach an agreement as soon as possible, it is critical to ensure that the final outcome is sustainable for both our staff and the district’s long-term fiscal health.

Q5: Why are employees being kicked out of this meeting for asking tough questions?

A5: We encourage transparency and open communication. No person was removed from this webinar. We are committed to addressing all questions and concerns appropriately.

Q6: What happened to the money from the bond measure in 2018 that was passed? Now you want another bond.

A6: The funds from the 2018 bond were allocated toward specific capital projects, including facility upgrades, safety improvements, and modernizing learning environments. These types of bonds are earmarked for infrastructure, not operational expenses like salaries. The proposed bond is focused on continuing essential improvements.

Q7: Please explain to everyone that you have to deficit spend down the excessively large ending balance - why are you trying to scare the public and staff?

A7: Deficit spending is a reality we face due to declining enrollment and increased costs. While we are working to responsibly manage the ending balance, it’s important to communicate that continued deficit spending could jeopardize programs, staffing, and services in the future. We aim to provide transparency with fiscal responsibility.

Q8: If charter schools are taking away from our student population, why are we not looking to close some?

A8: Charter schools are independently operated, and the district does not have the authority to close them unless they are not meeting legal or academic requirements. However, we are exploring all options to manage the impact of declining enrollment on district schools.

Q9: I hope that striking is an option! Union??

A9: Strikes are a last resort and represent a breakdown in negotiations. The district is committed to continued good-faith bargaining with the union to avoid such disruptions and to find a solution that serves both staff and students.

Q10: Do we receive more money because we are a Title 1 district? Does Title 1 money need to be spent in restricted areas?

A10: Yes, as a Title 1 district, we receive additional funding to support low-income students. These funds must be spent on specific programs and services that directly benefit students in socio-economically disadvantaged households, and there are restrictions on how the money can be used.

Q11: Ending balance for 2017-2018 was $105,947,581 with student enrollment of 48,669 vs. projected 2026-2027 ending balance of $142,427,447 with projected student enrollment of 33,114. This is a difference of an increase of $36,479,866 to the ending balance with 15,555 fewer students. Please explain.

A11: The increase in the ending balance is largely due to strategic budget management, including cost-saving measures and the accumulation of reserves to address future financial uncertainties. However, declining enrollment will have a significant impact on revenue, and these funds may be needed to offset operational costs in the coming years.

Q12: Does it include a reduction in school counselors?

A12: At this time, the district is committed to maintaining support for students, including counselors. However, staffing decisions may need to be revisited depending on future budget constraints and enrollment trends.

Q13: Also, slide 17 shows that they budgeted 3.8% for last year, not the 4.8% that Ron stated during his June 11th presentation—which is it? They are also budgeting less for certificated salaries for this year knowing that we haven’t settled for last year nor have we had any real attrition. The numbers don’t make sense.

A13: The 4.8% figure that Ron mentioned was not a specific reference to a proposed salary increase. The 4.8% figure included a number of factors, including the 3% on-schedule salary increase that the district was offering at the time that SAEA declared impasse.

Q14: What is the cost of a 1% salary increase? How does that amount compare with the annual budget?

A14: A 1% salary increase costs approximately $3,951,447 million for certificated non-management staff. This represents a significant portion of the district’s overall annual budget and must be carefully considered alongside other critical expenditures.

Q15: So interesting that only you guys can see the comments and questions. That says A LOT! Too afraid to face us!!

A15: We understand your concerns and are committed to transparency. We encourage all stakeholders to voice their opinions, and we will ensure that all comments and questions are considered and addressed and made public.

Q16: We are currently at $362 million in reserves. What’s the district’s view on how much we should have in reserves?

A16: The district’s reserve level is necessary to maintain financial stability and respond to future challenges, such as declining enrollment, unexpected costs, or emergencies. Generally accepted best practices call for maintaining reserves of between 10% and 17% of annual expenditures, though this can vary based on fiscal health and projections. The average level of reserves for unified school districts in the State of California was 23.74% at the end of the 2022-2023 fiscal year.

Q17: You said that the reduction in force of 150 per year over the next two years is accounting for teachers (300 total). What is the projection for reduction in force for support services? Is it included in the 150 number or will there essentially be more reductions with support service staff?

A17: While the focus has been on reducing certificated staff, support services are also being evaluated based on enrollment and district needs. The reduction in force for support staff will depend on future budget reviews and overall district needs.

Q18: How does the teaching reduction of 150 per year for two years relate to the expected declining enrollment? Does that solve the issue, or simply reduce the expected use of the reserve funds?

A18: The reduction aligns with the district’s declining enrollment trends, aiming to adjust staffing levels accordingly. While this reduction mitigates the impact of declining enrollment and decreases in revenue, it does not entirely solve the long-term budget challenges that the district is facing.

Q19: Where are the new Arts & Music funds considered in the budget?

A19: The new Arts & Music funds are allocated specifically for enhancing those programs, and they are reflected in the restricted funds portion of the budget. These funds must be used for designated purposes.

Q20: What is your plan for overstaffing? You didn’t really answer the question.

A20: Overstaffing will be addressed through attrition, potential retirement incentives, and adjustments based on enrollment projections. We aim to manage staffing levels in a way that minimizes disruptions to students and staff.

Q21: Are they planning on cutting school counselors in the same numbers as they are cutting teachers? That was a big number for teachers.

A21: Currently, there are no specific plans to cut counselors at the same rate as teachers. All staffing decisions will depend on budget constraints and enrollment trends. We are committed to maintaining support for students while balancing fiscal responsibilities.

Q22: Has SAUSD completed an analysis of ALL positions and their functions and their continued need for our district?

A22: Yes, the district is in the process of conducting a comprehensive analysis of all positions to ensure that staffing aligns with current and future needs. This review includes evaluating the efficiency and impact of each role within the district, as well as its continued necessity in light of enrollment declines and budget constraints.

Q23: Why was more than 50% of COVID funds spent on personnel? Can you provide clarity around what personnel?

A23: The majority of the COVID relief funds were allocated toward personnel costs because of the need to maintain staffing levels to support students during the pandemic. This includes teachers, support staff, and other essential employees who ensure continuity of learning through remote and in-person instruction, additional health protocols, and expanded support services for students.

Q24: What is the actual cost of the certificated raise?

A24: The cost of a 3% certificated non-management raise is $11,854,341 on an ongoing basis.

Q25: Do you realize that San Juan Capistrano and Santa Ana have very different demands? This is disgusting.

A25: We acknowledge that every district faces unique challenges, and we are mindful of the specific needs of Santa Ana Unified School District (SAUSD). We need additional information to accurately answer this question.

Q26: If the actual spending is over the projected budget, who covers the shortage?

A26: If actual spending exceeds the projected budget, the district would have to cover the shortfall by drawing from its reserves or by implementing cost-saving measures. This could involve difficult decisions, such as reducing staffing, expenditures in other areas, or revisiting staffing and program adjustments, including increasing class enrollment.

Q27: Where do management salaries fall in comparison to other districts? Can you share median management salaries and how they compare to SAUSD?

A27: Management salaries at SAUSD are competitive with other districts in the region and reflect the experience, responsibilities, and scope of work.

Q28: Why are management salaries not included with the teacher salaries?

A28: The total management salaries (classified and certificated) and teacher salaries are generally presented separately because they fall under different categories within the district budget and bargaining agreements. Both groups play critical roles, but their salary structures, duties, and responsibilities differ.

Q29: Can we save positions if we do not have a salary increase?

A29: Choosing not to increase salaries could help limit the number of job cuts, but it won't fully prevent positions from being eliminated. We are working to balance fair pay for employees with the goal of keeping as many jobs and programs as possible. However, due to declining enrollment and budget challenges, some changes will still be necessary.

Q30: How does the Superintendent's salary compare with other Superintendents in other districts?

A30: The Superintendent’s salary is in line with compensation for superintendents of similar-sized districts in California. It reflects the scope of responsibilities, including managing a district of this size, the complexities of the role, and the experience level. We are transparent with salary information and are happy to share data that provides a broader comparison.

Q31: Where does the money come from for retirement incentives?

A31: Retirement incentives, if offered, would typically come from the district’s general fund. However, these incentives are potentially a cost-saving measure in the long run because they encourage higher-salaried employees to retire, allowing the district to manage staffing levels more effectively.

Q32: How many fewer classified positions have been assumed in the future budgets? In other words, how many classified staff positions will be gone each year?

A32: The reduction of classified positions will depend on enrollment trends and the district’s budget outlook. Future staffing adjustments will be made based on district needs and fiscal realities, with a goal of minimizing the impact on students and services.

Q33: What supports does the board want to keep, and what is the cost of each of them?

A33: The board prioritizes maintaining supports for students, such as smaller class sizes, counseling services, and after-school programs. Each support comes with specific costs, and the district works to balance these with available funding. Detailed cost breakdowns are part of the ongoing budget discussions.

Q34: Will ECE staff get a matching raise like Teachers Union?

A34: Early Childhood Education (ECE) staff received a 3% salary increase for the 2023/2024 school year through CSEA negotiation sessions.

Q35: Instead of cutting teachers, can we offer retirement packages?

A35: Offering retirement packages is one option being considered to reduce the need for layoffs. Encouraging early retirements can help adjust staffing levels while minimizing the impact on current employees.

Q36: Will there be a golden handshake to help reduce staff?

A36: A golden handshake is one of the retirement incentives under consideration. It would encourage eligible employees to retire early, reducing the need for layoffs and allowing the district to manage its staffing levels more strategically.

Q37: Why are management salaries not included with certificated salaries?

A37: Management and certificated salaries are listed separately because they fall into different budget categories and involve different bargaining processes. However, both are essential to district operations and student outcomes.

Q38: Will there be teacher layoffs next year?

A38: While we are working hard to minimize the impact on our teachers, declining enrollment and budget deficits may result in some layoffs.

Q39: To retain quality teachers and counselors, competitive salaries are essential. Working in SAUSD presents unique challenges compared to districts like Irvine or San Juan Capistrano. Please define unique challenges.

A39: SAUSD is committed to offering competitive salaries that reflect the demands of working in our district. The unique challenges include higher levels of student diversity, language needs, socio-economic challenges, and the complexities of serving a large urban district.

Q40: Are the thirty hours part of the multi-year projection?

A40: No, the 30 hours of tutoring was a strategy used during COVID and after our return to in-person instruction. The expense of 30 hours of tutoring is approximately $10 million dollars. The district will not be providing 30 hours of tutoring. Opportunities for additional assignments have been provided through the after-school programs.

Q41: If the top is $147,000 for certificated, how did a few teachers from REACH make around $250,000?

A41: Teachers at the REACH CDS work extended year contracts (225 days), which accounts for the higher salary.

Q42: What will be the ratio of teacher to students for the years that the number of 150 teachers are not needed?

A42: The student-to-teacher ratio will depend on enrollment and budget projections. While we aim to maintain smaller class sizes, reductions in staffing will align with enrollment declines, which may result in adjustments to the ratio.

Q43: Do you feel the superintendent and assistant superintendents really work so much harder than teachers where they earn approximately $100,000 to $200,000 more than the average teacher? We just want to earn enough to support our families.

A43: The salary for superintendents and other executive staff reflects a longer work calendar, the level of responsibility, scope of oversight, and the demands of running a large, complex organization like a school district. These roles involve managing budgets, overseeing operations, and ensuring compliance with state and federal laws, in addition to guiding the educational strategy of the district. While the roles differ, we recognize the hard work of all staff, including teachers, and are committed to providing competitive compensation for everyone.

Q44: If you know exactly how much classified and certificated salaries are and where they rank in comparison to other districts, why do you not know the exact pay comparisons on the superintendent and management at the DO, not to mention knowing how top-heavy we are in comparison to other districts? Seems like you should know your numbers!

A44: The salary difference between teachers and district administrators reflects their varying responsibilities. The superintendent and assistant superintendents manage not just individual classrooms, but district-wide operations, strategic planning, budgeting, regulatory compliance, labor negotiations, and initiatives supporting student achievement and well-being. Their role is to ensure the district runs smoothly for everyone. It’s also important to note that management positions are a small part of our staffing.

Q45: Why are you using scare tactics to explain deficit spending to the community? You have to spend down the ending fund balance and that is deficit spending. How are you being transparent?

A45: We are committed to full transparency and are not using scare tactics. Our goal is to be honest about the district's financial challenges. While it is true that we must spend down the ending fund balance, continued deficit spending without corrective action could lead to more severe cuts in the future, affecting staffing, programs, and services. We aim to balance the need to spend reserves with long-term financial sustainability.

Q46: Does it make financial sense to offer a golden handshake this school year to encourage early retirement for those close to it? Are there any projections on the potential impact? Could it help save jobs or reduce the need for RIFs at the end of the school year?

A46: A golden handshake is one of the options being considered. Offering retirement incentives could provide cost savings by reducing the need for layoffs and allowing the district to adjust staffing levels more strategically. We are analyzing the potential financial impact and long-term savings of such a program.

Q47: What can we do as employees to help reduce layoffs?

A47: Employees can help by collaborating with the district to find creative solutions to budget challenges. Additionally, reducing unnecessary expenditures, increasing student enrollment through outreach, and identifying areas where cost-saving measures can be implemented without compromising student learning will help the district mitigate the need for layoffs.

Q48: What kind of services take up 12% of the budget? Can this be trimmed?

A48: The 12% allocated to services includes, but is not limited to, expenses such as transportation, maintenance, utilities, professional development, and contracted work. While we are reviewing all budget categories for potential savings, many of these services are essential to district operations and may not be easily reduced without affecting the quality of education or compliance with legal requirements.

Q49: Ballpark, what does SAUSD spend on payroll per month? (I'm trying to wrap my head around the size of these numbers)

A49: On average, SAUSD spends approximately $62 million on payroll each month. This includes all certificated staff (teachers, counselors, etc.) as well as classified staff (support services, maintenance, clerical, etc.).

Q50: In 2022 the superintendent received $61,906 in benefits. What did those benefits include?

A50: The benefits provided to the Superintendent in 2022 included standard employment benefits such as health

Q51: Top of the salary scale is not $147,000; it is $133,000.

A51: Thank you for pointing this out. The maximum teacher salary schedule is actually $133,412.

Q52: What is the plan for instructional coaches, CLAS, and itinerant support teachers? Will those positions continue beyond this year?

A52: The continuation of instructional coaches, CLAS, and itinerant support teachers will depend on the district's budget and instructional needs. These positions are essential to providing targeted support for teachers and students, and the district will work to retain as many support positions as possible within budget constraints.

Q53: So is what Mr. Hacker is saying that you will continue to meet with the labor partners, but it's not going to matter?

A53: We are committed to working with our labor partners to reach agreements that benefit both staff and the district. Every meeting is part of a process that involves negotiation, problem-solving, and ultimately finding a path forward. It does matter, and we value the input from our labor partners.

Q54: Please dive deeper into salary in relation to the three-year projections.

A54: Salaries represent a significant portion of the district’s budget, and any increases have long-term implications. The three-year projections include anticipated salary adjustments, step-and-column increases, and benefits costs. These are carefully balanced against projected revenue, which is expected to decline due to reduced enrollment. We will continue to analyze and adjust projections as negotiations progress to ensure financial sustainability. The district will be diving deeper into these topics in future webinars.

*Note: Some questions were combined to reduce redundancies.