ABC School District Board Votes to Cut Member Compensation

By Shelley Henderson

In an action that continued a long-standing spirit of exemplary cooperation and support between the ABC School District Board of Education and the District’s administration, faculty and staff, the members of the Board voted 6-0 to cut the amount of money that each member receives for serving on the Board in an amount proportional to the cut taken by the District’s faculty and staff in contract negotiations approved at the June 23rd meeting of the Board.
Board member David Montgomery was absent. However, in an email sent to Board member Mark Pulido and read into the record, Montgomery expressed whole-hearted support of the proposal by invoking something his own mother had taught him: Don’t ask others to do something that you are unwilling to do yourself.
The budget approved at the June 23rd meeting assumed that the student population will shrink by 150, that new flexibility legislated by the state will allow transfer of $3.6 million in categorical funds the district will have available, $5.4 million in state fiscal stabilization funds from the federal stimulus program, and $1.8 million will be available from federal Individuals with Disabilities Education Act (IDEA) funds and that employee furlough days will provide approximately $2.2 million in savings.
The approved budget further assumed delayed rehiring of non-classroom personnel, reduced contracts and operating expenses, and elimination or modification of class size reduction programs.
Also approved at the same June 23rd meeting were labor agreements that called for a reduction of the work year and consequent reduction in compensation for teachers, staff and administrative personnel that explicitly included four unpaid furlough days.
Total net revenues in the approved budget came to $163 million and total expenditures of $165 million for a deficit of $1.5 million. The deficit will be made up from the district’s reserve fund.
Superintendent Gary Smuts opened discussion of the agenda item by praising the hard work and foresight of those who put the budget and labor agreements together under the cloud of the California state budget crisis. Because of that hard work and foresight, no further cuts are currently needed to bring the School District’s budget into line with the current state budget.
In his comments, District Chief Financial Officer Toan Nguyen stressed that changes to the budget may be forced later in the year should promised funding from the state be further reduced. That promised state funding depends on state revenues meeting projections in the current state budget.
On Aug. 10th, California State Controller John Chiang released information stating state general fund revenues dropped 8 percent in July 2009 when compared to July 2008. Personal income tax revenue dropped 11.5 percent ($335 million) year-over-year. Revenue from corporate taxes rose 9.1 percent ($18.9 million) and sales tax rose
20.8 percent ($185 million), not enough to make up for the drop in personal income tax. Gavin Riley, representing the ABC Federation of Teachers, Local #2317, spoke in favor of the proposal, expressing the consensus that all bargaining units were treated in a similar fair manner that would avoid long--term animosity. Especially appreciated was that no permanent employees have been laid off. He expressed gratitude for the Board members willingly voting to “join the club.”
Following the close of discussion, the proposal was approved by voice acclamation. It will result in a small but highly symbolic savings of $1,510 to the District general fund.
The headquarters for the ABC Unified School District is located at 16700 Norwalk Blvd. in the city of Cerritos. For more information call the District’s main telephone number at 562-926-5566 or visit the official District website at www.abcusd.k12.ca.us.