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Capo Schools Go on Borrowing Binge

To fix cash-flow problems, the school board eyes another short-term loan, bringing Capo Unified's total borrowing this year to $100 million.

 

The Capistrano Unified School District is about to borrow more money than ever to make ends meet through the end of the school year.

On Monday, the Board of Trustees will consider taking out a short-term loan of $25 million. That's on top of a $75-million loan taken in July, after the board authorized borrowing as much as $85 million.

Half of the first bridge loan is due to be repaid this month, and half in April. Property-tax revenues will cover those payments. But by June, a combination of factors will leave the district short another $21.3 million, creating the need for a second loan, according to a staff report.

The combined $100 million in loans represents 27 percent of the district’s $372-million budget.

“The district has never borrowed that much,” said CUSD spokesman Marcus Walton.

The short-term bridge loans are offered through a financial vehicle available to school districts called Tax and Revenue Anticipation Notes (or TRANs). It pools together other cash-strapped school districts, community college districts and county offices of education to get better terms for the loans.

Capistrano Unified has used TRANs regularly because it relies on property taxes as its primary source of income, and the payouts mostly arrive twice a year, in December and April, according to a staff report.

In addition to cash-flow issues created by the normal ebb and flow of property taxes, the state in recent years has routinely delayed payment to local school districts, the staff report says. For example, in the 2011-12 state budget, $2.1 billion owed to school districts this year won't be paid until the next fiscal year.

“This latest deferral brings the total amount of deferred payments the state owes to all school districts from February through June to over $8.3 billion,” the staff report states.

“This means approximately 40 percent of the total state-apportionment payments the district should have received before June 30 will now not be paid by the state until after the start of the next fiscal year,” the report says.

Staff cannot yet estimate the cost of borrowing the funds, paying interest and the cost of issuing the TRANs, the report states. 

The trustees meet at 7 p.m. Monday at the district headquarters, 33122 Valle Road in San Juan Capistrano.

Related Topics: Capistrano Unified, Capistrano Unified School District, bridge financing, and short-term loan

jollygirl

6:58 pm on Friday, January 6, 2012

How sad that the Patch used such a negative headline...I guess it is all about the ad revenue. However, as community news source, I would think it would be in the best interests of everyone (including the Patch) to report the news with integrity.

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OC Mom

1:52 pm on Saturday, January 7, 2012

Once again you attempt to quash free speech. People who read newsites are aware of you and Shelly's agenda and those who are educated aren't buying it anymore. Go away!

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Penny Arévalo

1:55 pm on Saturday, January 7, 2012

While not rising to the level of a Patch offense, I for one would NOT like jollygirl to go away. Nothing is learning from folks preaching to the choir. Please be courteous.

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OC Mom

2:20 pm on Saturday, January 7, 2012

That's fine! I'll try not to bother myself by reading the Patch! Jolly and Shelly intimidated many a poster on OC Register currently and in the past. It's nothing new. They have their own choir.

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jollygirl

2:29 pm on Saturday, January 7, 2012

I love the fact that the OCR finally had to require posters to identify themselves. While it cut way down on the posts it also cut way down on personal attacks and vitriol. What a shame that some think anonymity is a license to defame.

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shelly

2:26 pm on Sunday, January 8, 2012

OC mom,
What exactly is my agenda? My agenda is education. I am a parent. A parent whose 4 children attend 3 CUSD schools. What exactly is your agenda? I will not label you because I do not know or your agenda. You are free to post your opinions here but it is a comment board and not everyone is going to agree with you. You are telling Jollygirl to "Go away!" because you do not agree with her. Is this how you teach your own children to debate? The only person who is advocating quashing free speech is you by asking Jollygirl to "Go away!" So at work or in a social situation when someone is polite but does not agree with you do you shout, "Go away!" at them?

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shelly

2:43 pm on Sunday, January 8, 2012

OC mom,
I have not posted on the OC Register for a while now so how recently are you talking about. I have always posted under my name. I have been called names and been vulgarly insulted for being a stay at home mom with multiple children on the OC register simply for defending my children's schools and teachers. Really vulgar stuff. But I know that when I post people are not always going to agree with me and not everyone is polite or will respond respectfully. I try to respond how I would want my children to respond. Please read my posts and tell me how I intimidate anyone. Please find one post where I have called someone a name or shouted, "Go away!" or any insulting command.
My children, their schools, their teachers, accepting others for who they are and public education are things that I passionately support. I have a different view and experience than you. And that is okay.

I am involved in my children's education. I do not expect or want the teachers, schools administrators to do everything for my children. I know that they cannot. I am willing to take responsibility for my childrens education and do what I can to help.

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Greg

2:31 pm on Tuesday, January 10, 2012

So you're saying that borrowing nearly 30% of your budget is not binge borrowing? Sounds like union math to me.

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shelly

3:36 pm on Tuesday, January 10, 2012

Greg,
What exactly is union math? I am a parent and not a union member. Why do so many assume that people I am union just because I do not agree with the agenda of cutting teachers pay, pensions and benefits. I know who has my kids back and it is not the conservative people on this blog who keep saying that teachers are in it for the money. Volunteer in your kids class and see how hard teachers work and how much they care about your child and the children they teach.

Almost every school district is borrowing money because of how the state is funding districts. Union math or any math. Do you want the schools to stay open or not?

So what do you suggest? Shorten the school year? Increase class sizes? Cut salaries and benefits more? That is what happened with the former board and that is what will happen again if we, the public do not help. Simple vote yes or no but then don't complain about what happens.

RSM Dad

7:41 pm on Friday, January 6, 2012

What's the matter JG? Having a bit of whine with your cheese? Your union chickens are getting ready to come home to roost when the final shoe drop. Can't wait for the tax plan to fail and the district lays off all of you greedy union hacks.

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jollygirl

8:42 pm on Friday, January 6, 2012

Would you care to comment on the article?

Penny Arévalo

7:55 pm on Friday, January 6, 2012

JG, you play editor. The story is about the state deferring an unprecedented amount of school funds, forcing the district to have to borrow an unprecedented amount of money to handle its cash-flow needs. How would you write it? Keep it to 35-40 characters max.

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Shripathi Kamath

4:06 pm on Tuesday, January 10, 2012

"Capo Borrows Record Sums as State Defers Payments"

jollygirl

8:41 pm on Friday, January 6, 2012

I wouldn't define it as a binge...very negative connotations. And it would be great if you would emphasize that this is a challenge faced by every district in the state. How about looking into how many other districts are forced to borrow more money than ever before. My headline:
Reduced Revenues Force Increased Borrowing

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Greg

2:34 pm on Tuesday, January 10, 2012

Did you consider the actions of the new board in the pay kick backs they gave to the teachers virtually the minute they came into office? If they had followed the terms of the contract, they could have saved millions for the district. Instead, they rewarded the unions that got them elected. That has negative connotations for the fiscal stability of the district.

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shelly

3:44 pm on Tuesday, January 10, 2012

Greg,
Did you consider the fact that the former board signed the trigger language into the contract and the state increased the ADA money coming to our district so the trigger was pulled?

If the former board would have just negotiated cuts in the first place instead of imposing there would have been no trigger language. The cuts would have been for the length of the contract and there would have been no trigger to pull.

So if you have a problem with the trigger language you should take it up with the former board. There are still 4 of them on the board. Trustees Addonizio, Palazzo, Brick and Bryson were on the previous board and all ran as reform trustees against union endorsed candidates. The current board is 4 reform trustees and 3 non reform trustees. The former board still has majority vote.

Penny Arévalo

9:22 pm on Friday, January 6, 2012

Actually, I am putting something like that together. Stay tuned!

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M

7:39 am on Saturday, January 7, 2012

Agreed JG, but it's not the first time the Patch has used headlines like this.

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James Schumaker

8:19 am on Saturday, January 7, 2012

I'm wondering how the next round of State budget cuts will affect this picture. If the voters do not approve new taxes, over a billion dollars in state funding for education will have to be cut. How much will be cut from CUSD, and how will it affect the ability of the school district to get future bridge loans ? Hopefully, someone knows the answers to these questions.

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Penny Arévalo

8:26 am on Saturday, January 7, 2012

Hi James,
Cash flow and the overall budget are two different things. Here, the issue is how fast the state hands over the money due the districts, not actual cuts.

I think the way Gov. Brown phrased the "trigger cuts" if voters don't approve the taxes (i.e. equivalent to three weeks of school) was probably prescient. They probably will lop off three weeks of school (with state permission of course; by law, students need to be in school 175 days).

Of course, I'm sure there's a relationship between cuts and cash flow. The more the district cuts, the higher the percentage of deferred money, the greater the squeeze on cash flow. Make sense?

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jollygirl

9:54 am on Saturday, January 7, 2012

Well stated Penny and much appreciated clarification.

Capo mom

8:57 am on Saturday, January 7, 2012

It has been coming for some time.

Reads to me like CUSD is bankrupt, they just haven't figured it out.

Well maybe some like the departing Ron Lebbs and ever pilfering CUEA did.

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Jim Reardon

9:05 am on Saturday, January 7, 2012

Our departed Finance Director, Ron Lebs, once told the Board of Trustees, "Deferred revenue is lost revenue." He understood that you should not include deferred money in the current budget. What is more, when CUSD takes a "mid-year" cut, what is happening is they are losing that deferred revenue commitment from the state in an equal amount, not to mention that the next year's commitment from the state is reduced by a corresponding amount -- a double hit, in effect.

A TRAN is, in effect, a line-of-credit secured by future receivable payments. When a business borrows in this way, a bank monitors growth in income against growth in borrowing. If income is falling (as it is at CUSD) and borrowing is growing (as it is at CUSD), the lender will refuse to lend more money.

CUSD cannot repay its TRAN within this fiscal year. And the amount of TRAN borrowing outstanding at the end of this year is higher than what was outstanding at the end of last year.

Yet they keep assuring us that they got more money from the state and restored furlough days. And now, they want to shorten the school year by three weeks?

This is truly out of control.

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Penny Arévalo

10:04 am on Saturday, January 7, 2012

Hi Jim. When did Mr. Lebs say that? Was it published? That's not what I was told in researching this story: http://patch.com/A-frV1

Unfortunately, I think deferrals are like crack cocaine for the legislators. They can't kick the habit because they've dug themselves into such a hole. Gov. Brown's budget will start tackling the deferment problem. But only if voters approve new (albeit temporary) taxes.

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Jim Reardon

1:47 pm on Saturday, January 7, 2012

Hi Penny,

Keep up the good reporting. It helps people to understand what is actually happening.

Ron Lebs made the comment I quoted in budget presentations before the Trustees back when Woodrow Carter was Superintendent. Carter hired Mr. Lebs. Of course, in those days, we had a different Board majority who cared, at least a little, about the fiscal solvency of the school district.

I'm sure Mr. Lebs changed his tune after the election. The current Board majority cares only for fully funding the union contract, even at the risk of insolvency. Perhaps this bias had something to do with Mr. Leb's decision to depart.

You've already noticed that School Services (a respected private consultancy) recommends against including deferred funds in a budget. The OC Department of Education has taken the same position. But once the Legislature relieved the OCDE of its obligation to certify CUSD's budget, their role became moot.

Finally, I agree. Nobody wants CUSD to shorten the school year by three weeks. Perhaps those who have so assiduously protected the privileges of senior union members could offer an alternative to closing the schools?

Don't hold your breath waiting to hear from them.

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jollygirl

1:52 pm on Saturday, January 7, 2012

Mr. Reardon, so you agree that CUSD and CUEA do not want to shorten the school year. What are your solutions for the budget crisis?

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Penny Arévalo

3:29 pm on Saturday, January 7, 2012

Jim, I found the quotes. It came from the Feb. 9, 2009 meeting. Here's the audio (starts around 41:25 http://cusd.capousd.org/cusdweb/boardaudio/2-09-09/02-09-09Meeting.mp3) and here's the Power Point from that presentation http://capousd.ca.schoolloop.com/file/1218998864154/4699097598089563252.pdf (fifth slide)

Quotes from that meeting (for those who do not want to click through):

"If we're deferring revenue from one year to the next, it really becomes a cut."

and

"A deferral needs to be treated as a cut."

The PP slide says: A permanent deferral = cut

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Jim Reardon

8:52 pm on Saturday, January 7, 2012

Penny, you're amazing. I was in the room when Ron Lebs said that. I approached him afterwards and complimented him on his candor. I'd forgotten about the PowerPoint.

The current Board of Trustees would do well to review that audio. And they should realize that the staff isn't going to defy the sentiment of a majority of board members, which is with the union (having incurred a large debt in the last election), in order to lay an opposing opinion on the table.

Funding for education begins and ends in Sacramento. Revenue for the state government has fallen dramatically. The whole state economy is in deep trouble. Legislators and the Governor have dished out some tough medicine by killing redevelopment agencies, which will hurt incumbents of both political parties. But it needed to be done and the school budgets are the principal beneficiaries of this move.

The shot in the arm from redevelopment is already in this year's budget and we're still way under water.

With thousands of people being tossed out of work as a result, and cities throughout the state taking a huge financial hit as they watch their redevelopment and affordable housing initiatives suffocate, what will CUSD do?

It is time to recognize that no matter how friendly you are with the union, the Trustees job is to cut costs AND maintain education quality.

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jollygirl

9:02 pm on Saturday, January 7, 2012

Mr. Reardon, your charges of union collusion with the board are groundless, although they certainly serve you well as a tool to divert attention from the real issues. Please show any proof of all of these charges. The current board is made up of a majority who were not backed by the union. What are your solutions for the funding crisis? Perhaps you didn't see my previous post asking this question.

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Penny Arévalo

7:48 am on Sunday, January 8, 2012

Well thank you, but as much as I'd like to leave the readers with the impression that I hunted all day, I really found that meeting with the on-point quotes on the first try! Sometimes, you just get lucky ...

shelly

9:50 am on Saturday, January 7, 2012

"Capo Schools Go on Borrowing Binge"
binge   
noun
1.
"a period or bout, usually brief, of excessive indulgence, as in eating, drinking alcoholic beverages, etc.; spree."

so it is a binge CUSD going on? or is it to keep schools and programs intact? Binge? Really?

Programs have been cut, salaries and benefits cut, class sizes increased.

Every school district in California is facing economic difficulities since the economy tanked. Funds and investment depleted.

Many blame the teachers, administrators and staff but they did not deplete the funds, investments and budgets that tanked during the economic downturn. They actually have had their salaries and benefits cut.

Now we, the public, are asked to step up a little and pay a little more. Not much if you actually research the proposal. Do we value education?

But many want only the teachers, administrators and staff to endure the cuts instead of they, themselves helping a little more.

The only people I see whining here are the ones who do not want to pay a little extra in taxes.

Still even if the Governor's proposal wins out budgets will still need to be cut, salaries and benefits cut and programs cut.

I value education and I will be voting yes. I know, not popular in a conservative world but if I am going to ask others to sacrifice then I'd better be willing to do so myself.

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Penny Arévalo

11:01 am on Saturday, January 7, 2012

Shelly, I'm not sure it's accurate to say that all school districts will face cuts even if the taxes do pass. Gov. Brown's budget includes MORE money for schools next year than it offered this year (if the taxes pass). However, CUSD will still need to cut some (we'll get a more precise number as we move along in the budget process) because of several factors, among which include declining enrollment, the exhaustion of one-time funds and steady depletion of other accounts that are now being tapped to stay afloat, i.e. deferred maintenance.

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shelly

11:59 am on Saturday, January 7, 2012

Especially since all districts are not funded the same.

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Greg

2:38 pm on Tuesday, January 10, 2012

"Still even if the Governor's proposal wins out budgets will still need to be cut, salaries and benefits cut and programs cut."

That is simply not true. Putting aside the Governor's gimmicky budget, cuts do not have to be made to education. That is simply Brown's attempt to scare people into voting for the increased taxes he wants. If you bothered to read the stories about the budget, you would know that Brown is proposing increasing the budget by 6 or 7%. If he simply maintained the same budget as last year, or heaven forbid REALLY cut the budget, there would be no need for further cuts if the tax increases are rejected because the $6 billion he is proposing increasing the budget would cover the lost "revenue" from the rejection of tax increases.

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shelly

7:05 pm on Tuesday, January 10, 2012

Greg,
I don't know if what I say is "simply not true" given that in the last couple of years since the economy tanked education has been a target.
Gimmicky? K-12 and higher education funding has been cut every year since the economy tanked. Governor Brown actually didn't cut education this year as much as he could have because education had already been cut.. And Brown may be increasing the budget 6 to 7% but it is a budge that has already been slashed.

Our class sizes are bigger and programs have been cut. Are you satisfied with the status quo and the same funding for education? I'm not.

As a country we should actually value educaton. And value the people who work in education. Now since we are in a financial crisis some call teachers hacks, only in it for the money, and not as intelligent as other professions. These are people who previously had nothing but praise for teachers. So to me it seems like it is all about the money for the critics not the teachers.

Finland has teachers union and almost all schools are public and their students are highly educated. They value education.

We, the public, had better stop nickle and diming education and start viewing our taxes that go into education as investments into our countries future.

jollygirl

9:56 am on Saturday, January 7, 2012

CUSD does not want to shorten the school year by 3 weeks. Please refrain from making such misleading statements. This is a state fiscal crisis that needs to be addressed by everyone. It seems that your solution is to have just one segment of the population make up the deficit (teachers and other school employees). Schools benefit us all and we should all be responsible for funding them. Teachers have taken cuts in salary and benefits and are well aware that more are probable. They are adjusting their financial picture like everyone else. Either you are unaware of all of this or you are using the statewide crisis to fuel your own vendetta against CUSD. You seem to be well aware of school district financial practices so you must also be aware that CUSD does nothing different than every other district in the state does in order to meet their fiduciary responsibilities. Again, please refrain from attempting to paint this as a CUSD issue primarily. It is a statewide issue that we need to work together on...and litigation only serves to add to the financial burden while fueling division. Surely you can come up with some other way to help the situation.

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Penny Arévalo

9:58 am on Saturday, January 7, 2012

Not sure whom you're addressing, but I don't think anyone WANTS to cut the school year by three weeks next year. I was only *speculating* in trying to answer Mr. Schumaker's question. The only information we have to go on (in trying to determine what might happen if the taxes aren't passed) is Gov. Brown's own words. Superintendent Bill Habermehl characterized this as using the students for politics. I'll let you all debate that.

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jollygirl

10:06 am on Saturday, January 7, 2012

Sorry...should have clarified that I was addressing Mr. Reardon's accusation that CUSD "wants to shorten the school year by 3 weeks." I would characterize it as more an effort to let voters know that schools all over the state have been cutting budgets for the last 4 years. There is nothing left to cut without raising class size to unacceptable levels (if we haven't done that already). It is time for people to realize that schools can operate until they run out of money...and that will be 3 weeks earlier if more revenues are not generated. Are you really ready to devastate our schools? Penny wise, pound foolish in my opinion. Penny is there a way to find out exactly what the proposed tax would mean to each individual tax payer? If it is a half cent sales tax increase I think we can handle that.

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Penny Arévalo

10:32 am on Saturday, January 7, 2012

Yes, half-cent more for sales tax and additional income taxes on people who make more than $250,000.

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jollygirl

10:41 am on Saturday, January 7, 2012

Thanks Penny, I think we can handle that in the interests of our children. Some believe that just teachers and other school employees should shoulder the burden. I wonder if there is any way to find out just how much of a pay cut would solve the fiscal problem in CUSD?

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Penny Arévalo

10:55 am on Saturday, January 7, 2012

It wouldn't be difficult to figure out. IIRC, I believe the average, round number for cost-per-teacher is $100,000 (includes salary, benefits, pension). The district must cut $1.7 million by February off of this year's budget, and $23.5 million by June's end for next year's budget. The math is easy from there.

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jollygirl

11:15 am on Saturday, January 7, 2012

Wouldn't we have to know how many teachers? Is it around 3000? Sorry but I don't know what your source is for average salary, etc. It is always amusing when people want to add benefits to teachers average salary when benefits are not figured into other salary figures (expense accts., car allowance, bonuses, or health and pensions/401k's). But I digress.
Would salary cuts be based on this years budget or potential future budget cuts? Would districts build up reserves with salary cuts?
With projections so hard to predict how would that work? Retroactive salary cuts?
And would posters recognize pastor future salary/benefit cuts...oops, digressing again.

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Penny Arévalo

11:22 am on Saturday, January 7, 2012

JG, if I'm remembering correctly, it was from the budget forum the district held so that the community could discuss the budget last year. That, or a school board meeting. I get all my info from the school district itself, occasionally the Fiscal Report from School Services of California (a CUSD consultant) and the state and county departments of education.

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Capo mom

11:54 am on Saturday, January 7, 2012

You haven't kept up with the pinkslips, jollygirl. But then you don't live in the district or have any kids in CUSD, do you? According to cde reports there are 2120 teachers in CUSD. Average salary is available from the SARC. Last time I checked it was about $78,000 direct burdened payroll expense per teacher adds approximately 32%, so Penny's number is close.

And mention of crack cocaine is also apt. I doubt the public will vote to tax itself to put more money in the hands of those who have demonstrated they cannot manage it responsibly. That would be like giving money to a junkie.

Habermill's statement is interesting. I think even he is sensing which way the wind is blowing.

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Penny Arévalo

11:57 am on Saturday, January 7, 2012

To be fair, I think it was the the Legislative Analyst's Office (LAO) that likened the state's dependence on deferrals to an addition.

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Capo mom

12:09 pm on Saturday, January 7, 2012

More like a subtraction or an erosion than an addition, I'd say ;)

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Penny Arévalo

1:07 pm on Saturday, January 7, 2012

LOL, funny typo. I meant addiction. But I guess the deferrals keep "adding."

concerned parent

10:21 am on Saturday, January 7, 2012

One of the more frightening sentences in this article is that staff has no idea how much the loan will ultimately cost. Once again, the district is addressing short-term interests and not dealing with the real and very difficult fiscal issues confronting it. This is not to excuse the state from its role in helping create the budget shortfall. But the district is mimicking the state of California in its fiscal irresponsibility, which is saying something. When will either body start dealing with the real issues at hand?

People who suggest taxes, a la Brown and JG, are dreaming. Do you want to create even more burden on a state that's already one of the highest taxed in the country? Force more businesses to move out of state? Suppress consumer buying power even more? Saying there's "nothing left to cut" is simply wrong, both at the state level and at CUSD's. There must be true pension and salary reform... but as long as the unions retain their stranglehold on Sacramento---and local entities--it's hard to see that happening.

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Capo mom

10:22 am on Saturday, January 7, 2012

CUSD (meaning the community of students, families and taxpayers) may not wat to shorten the school year, but CUEA, the union that represents CUSD teachers, has no problem with it. And CUSD (meaning the community of students, families and taxpayers again) will just have to deal with it.

This isn't simply the result to California fiscal crisis. CUSD has been struggling with financial problems for more than 5 years. And yet CUEA initiated discontent, went on strike rather than accept a pay cut , financed their trustee candidates to the tune of hundreds of thousands of dollars and saw them installed. At the first meeting to the union's board, their candidates voted to kickback teachers salaries at the expense of our kids. This happened after the state had endured a couple of year of fiscal problems.

In CUSD layoffs have continued, class sizes continue to increase, the school year gets shorter but teachers' salaries were restored and the district upped its contribution to employees benefit programs.

It is simply false to claim what is going on CUSD is the result of California's fiscal problems.

Our district was plundered by rapacious and corrupt union practices.

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OC Mom

2:08 pm on Saturday, January 7, 2012

Exactly Capomom and from what I've read Garden Grove unified hasn't had all of the cuts we've had. Our district spent to much building the district headquarters and San Juan Hills High School when the economy was good. They didn't keep enough reserves for that "rainy day" we're having now. The whole SJHHS fiasco is another issue that was discussed in the film "Not as Good as You Think." The school is built near a natural gas line as well as being under high voltage. Not to mention Mr. Fleming the former Superintendent's 18 year old son being given a $100K a year drywalling job on the school. Our district is corrupt and we thought the reform candidates would change things and they did when they tried to make the teachers take some pay cuts, but the last election was won by the Union backed candidates who restored that paycut and do not have the interests of the students in mind. Some of us are very much awake Jolly and Shelly. Even though the last election I received deceptive phone messages from supposed conservative candidates and mailers from those candidates when in reality they were the union backed candidates. Fool me once shame on you, fool me twice shame on me. The parents in CUSD are fed up, the economy is bad and they've taken paycuts and their homes have lost value. It's time that the teachers take a cut again.

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jollygirl

2:22 pm on Saturday, January 7, 2012

Districts are not equally funded so they cannot be compared when cuts are made. I would be interested in your solutions for the current crisis. If it is cuts in salary and benefits please offer some figures as to what percentage would be necessary to fill the gap. And please answer my questions about whether you support retroactive pay cuts or cuts to build reserves for future unknown cuts.
The district you mention also works with their employees to find solutions. Many teachers in many districts have taken cuts, were willing to do so (including CUSD teachers both before and after the strike), and realize more are sure to come. CUSD is finally working with all stakeholders to look for solutions and no matter how many times some say it is collusion, it is not. It is simply the right thing to do. Many districts restored furlough days because it was the right thing to do when more funds than expected came from the state. I'm not sure why you and other posters prefer a divisive approach in CUSD. Let's all work together just as they do in all of our neighboring districts.

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jollygirl

2:34 pm on Saturday, January 7, 2012

"CUSD (meaning the community of students, families and taxpayers) may not wat to shorten the school year,"

You do realize that teachers also have students in the district and pay taxes...are you excluding them from the community?

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shelly

3:51 pm on Saturday, January 7, 2012

OC Mom,

Because the former board imposed a contract and did not negotiate they then had to go back and negotiate trigger language into the final contract. If you have a problem with the language of the contract then you should take it up with the former board because they are the ones who signed it.

As to the history of the district building and SJHHS and budget reserves at the time I really suggest that you do some research and check out the numbers.

I did not agree with the building of the district building and the high school in fact I voted against the high school being built by the dump when it was a ballot issue in SJC. I wrote letters before the administration building broke ground instead of after the fact. But they are both here. But you have an issue with the reserves. If you look back at the budgets at the time when those were built and after CUSD maintained their reserves . Instead of just stating what you think is true you might want to actually do research. The reserves went down when the economy tanked. The reserves decreased under the previous board. Please research this for yourself.

Garden Grove has had cuts just like us. Furlough days and increased class sizes in Garden Grove.

All school districts face drastic cuts. Not because of teachers or their boards of trustees but because the economy tanked.

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shelly

3:57 pm on Saturday, January 7, 2012

OC Mom,
After the fact even though I still believe the location of the high school is not the best I am very happy it is here. CUSD did need a new high school because the other high schools were impacted. And SJHHS is a beautiful school with great teachers. I know this because my oldest is graduating from this school and has received a great education and fun high school experience. The building of the new high school allowed for more choices for parents and students. The building of the new high school I believe came out of building funds not the general fund.

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Greg

2:42 pm on Tuesday, January 10, 2012

Shelly, you are correct that "Because the former board imposed a contract and did not negotiate they then had to go back and negotiate trigger language into the final contract." However, you ignore the fact that the trigger language had not yet occurred when the new board gave the union members' money back. Had they waited until the proper time, the district would have saved considerable resources.

jollygirl

10:33 am on Saturday, January 7, 2012

Capo mom...no matter how many times you repeat your revision of the recent history of CUSD it will not become accurate. Your reply is full of misstatements that you refuse to address when questioned and a repugnant lack of respect for people who teach your own children. You know that your children's teachers are well qualified, caring and even agree with your political views of unions and yet you continue to vilify them.

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shelly

10:35 am on Saturday, January 7, 2012

Capo mom,
The budget crisis that CUSD is facing is being faced by every school district in Calfornia. And other school districts actually negotiated cuts and worked with their teachers. Maybe because they understood that we are all in this together and teachers work and care about our kiddos and the well being of the districts they work for. Because if the districts fail the teachers will be out of a job. Right. The previous board did not negotiate but imposed. We were the only district that did this. We were the only district to not negotiate but to impose.

I would advise everyone to read up on the issue. CUSD teachers agreed to the pay cut but the previous board chose to impose.

I don't follow your logic, Capo mom. If the school year is shortened then CUEA members will take a significant pay cut. Right? So if you believe that it is all about the money for them why would you state that they want the year shortened? Please clarify your point.

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shelly

10:45 am on Saturday, January 7, 2012

We all have a choice. Our economy tanked. Funds and investments depleted. School and education cut and cut. This did not happen under Brown but before him. We elected him now. We can choose now to pay a little more or shorten the school year and cut education more. So the choice is ours and we must be willing to live with the consequences of our choice and not blame our "government" or the teachers or the unions or the who ever. The choice is ours.

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Capo mom

10:47 am on Saturday, January 7, 2012

It doesn't change the facts.
CUEA drove the recall of trustees who sought to protect the fiscal resources of CUSD.
They went on strike to protest a pay cut.
They mounted a false and misleading campaign funded by thousands of union dollars to see their candidates elected.
At the first meeting of the union's new board, they voted to retore pay to their campaign financiers.
This board has not don't anything to resolve the financial problems we in CUSD face.

On the union board's watch; layoffs have continued, class size have increased, the school year grows continually shorter and the district's financial circumstances have become worse.

Go cash your benefit check jollygirl and don't forget to laugh along the way.

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shelly

11:29 am on Saturday, January 7, 2012

Capo mom,

The CUSD teachers went on strike to protest an imposed contract. Most teachers in Callifornia took pay cuts and did not go on strike because their districts worked with the teachers and parents to find a solution. CUSD teachers agreed to the pay cuts of the fact finder. They also agreed to the pay cuts after the strike. The amount of the pay cuts after the strike was almost identical to the amount before except the cuts were not permanent after the strike. Please check it out for yourselves.

Jollygirl is a teacher who worked for years to educate children. I do not know her but I thank her for her service to our society and children. I do not understand why you constantly insult her for being a teacher and working and being loyal to our schools.

I do not know how many years she worked for our district or how many children she educated or how successful they are now. Do you, Capo mom? Do you say the same to fire fighters and police officers who spend their careers saving lives.
"Go cash your benefit check..." fire fighers and police officers, "and don't forget to laugh along the way."

Read up on Finland and how they value their teachers and education.

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shelly

12:23 pm on Saturday, January 7, 2012

Capo mom,
What do you define as "benefit check" and as I asked before would you say the same thing to fire fighters and police officers who are also public employees?

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OC Mom

2:12 pm on Saturday, January 7, 2012

Truer words were never spoken. I hope more parents become aware of what has happened in our district.

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jollygirl

2:26 pm on Saturday, January 7, 2012

I think you placed your comment under the wrong post but, gosh, thanks OC Mom...

Penny Arévalo

11:04 am on Saturday, January 7, 2012

I don't believe the year has been shortened under the new board. If anything, it's gotten two days longer with the elimination of two instructional furlough days.

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Penny Arévalo

11:09 am on Saturday, January 7, 2012

Interesting tidbit from the story I did on deferrals last year (http://patch.com/A-frV1)

Even though it's legal to spend deferred payments, Schools Services doesn't recommend doing it. In a Feb. 18 report, its staffers say: “Given the continuing scrutiny of these funds and the uncertainty surrounding the outcome of the June election to extend the temporary taxes, we advise keeping these funds in your current-year budget but not spending them at this time.”

According to a recent survey, 45 percent of California’s school districts are doing just that. They're not spending their deferred money this year until the end of the 2010-11 year or are waiting for the 2011-12 school year, the state Legislative Analyst Office found. The LAO is a state agency that gives budget and policy advice to the Legislature.

Obviously, the June measure to extend the temporary tax increases didn't pass. Now we live with the uncertainty of what will happen in November.

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Jim Reardon

9:05 pm on Saturday, January 7, 2012

Penny,

There is no uncertainty about what will happen in November, no matter who is elected.

Even if a tax increase were to be approved by the voters, tax revenues will not rise. You can't squeeze blood from a corpse and the state economy is beyond even rigor mortis. Decay has begun and conspicuous taxpayers are leaving the state in droves to let trapped pensioners pay the bills.

Public employee unions and creatures of government are living in an artificial world, keep viable by the notion that "the future is uncertain". But it's not.

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jollygirl

11:34 am on Sunday, January 8, 2012

So to summarize your statement and follow it to it's logical conclusion..you feel the state is doomed, there is nothing that can be done, and it is all the fault of the unions. So now if we dismantle the unions, take away pension benefits that were promised over 30 years ago (and contributed to by every teacher), slash current salaries and benefits (could you give us a figure on that?) then all will be well and "conspicuous taxpayers" (whatever on earth that means) will stay in the state with pensioners (who will be living on the streets because you will take away their pensions). Sounds like a much better place to live Mr. Reardon. Thanks for the solution. Is there any way you might decide to leave the state? Are you one of the conspicuous taxpayers?

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Capo mom

12:06 pm on Sunday, January 8, 2012

And this is your real concern with education jollygirl ... not education per se, not fiscal responsibility but that your own pension may be at risk.

You do realize that, although you contributed to your pension, the major contribution comes from the taxpayers of the state of California, don't you? And that you are in direct competition with our students for those scarce resources?

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jollygirl

12:21 pm on Sunday, January 8, 2012

Actually, to be truthful, the major contributor to calSTRS pensions are the proceeds from investments of the fund. Your analysis of my post shows that you are really only interested in one thing...making sure that people know that you think you know who I am and what my motives are. Not very interesting to anyone else. And very unsuccessful in getting me to go away.

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shelly

12:39 pm on Sunday, January 8, 2012

Jim Reardon,
Can you please show proof to your statement, "conspicious taxpayers are leaving the states in droves" ?
Thanks.

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Jim Reardon

12:41 pm on Sunday, January 8, 2012

JG, it's a nice day. Why don't we go outside?

But beforehand,

1. The state is not doomed. However, some public employee unions are actively trying to protect their own interests above those of everyone else.

2. This problem is solvable if people are honest in their intentions.

3. You've not heard me advocate dismantling the unions. I believe the laws that require employees to be members of unions should be repealed. Then let the employees ("workers") decide about the unions.

4. "Taking away" a pension benefit is illegal and immoral. However, promising a pension benefit that you cannot pay is also. Forward pension commitments must be scaled-back. What's earned is earned. What's promised is done.

5. A 10 or 12 percent reduction in employee cost is not a "slash". Outside of education and government, employee costs have been cut by significantly more. It's a sad reflection of our times.

6. Pensioners will not lose their pensions to people like me. Instead, their pensions will be taxed by people like you. It's already happening.

What you don't seem to realize is that if the demands of your crowd are not moderated, then CUSD and other agencies will be insolvent. Through bankruptcy, the pension promises will be unwound in court and promises will be broken. Not by my ideas, but by your failure to comprehend what is actually happening.

Now, let's go outside...

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jollygirl

1:01 pm on Sunday, January 8, 2012

1. Protecting one's interests is not a bad thing. And it does not follow that it is above those of everyone else. Union employees have been making big concessions in the last few years...because they know it is necessary.
2. I totally agree. The first step is for all stakeholders in CUSD to work together. With the current balanced board this is happening again.
3. I was teaching in CUSD when the employees voted to become a closed shop. It was a decision made by the teachers. The union is required to represent all of the teachers and so they voted to make it mandatory for all teachers to join. I know of no law that requires teachers to join a union....otherwise charter school teachers could not opt out.
4. Teachers are well aware that future pension contributions and benefits may well change...it has happened before. If it were legal to change them retroactively there would be no point in negotiating them in the first place. All teacher benefits were negotiated in order to attract the best candidates to what has historically been a profession that pays less than those requiring similar education and training.
5. 10% decreases have already taken place in many districts. It becomes a slash when they are demanded year after year with no recognition that they ever took place.
6. Retired teachers have always paid taxes on their pensions. And both you and I receive the benefits paid by every taxpayer.

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jollygirl

1:08 pm on Sunday, January 8, 2012

"My crowd" is making no demands. It is made up of me and many of my colleagues who are willing to work together to find solutions to the crisis. Your insistence on divisive tactics, lawsuits, and condescending remarks about understanding the history of school finance which we have lived for many years before you every became involved will do little to help solve the problem. Quit pointing fingers, suing, and lecturing, and join the rest of us who care about the schools enough to speak civilly, respect all of the stakeholders, and work together. Go to a board meeting without your lawyer and offer some solutions.

just a parent

7:41 pm on Saturday, January 7, 2012

What's fascinating about these comments is that people seem to be directing their ire toward the district instead of the state who keeps deferring funds meant for our kids education.

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Capo mom

7:48 am on Sunday, January 8, 2012

"jollygirl
2:29 pm on Saturday, January 7, 2012
I love the fact that the OCR finally had to require posters to identify themselves. While it cut way down on the posts it also cut way down on personal attacks and vitriol. What a shame that some think anonymity is a license to defame."

jollygirl says this as someone who has no children in our district, does not live in CUSD and blogged anonymously for years. The only dog jollygirl has in this fight is defending CUEA's (bad) behavior.

I can't decide which is richer; the irony or the hypocrisy.

That fact are these;
CUEA created discontent in our school district, going so far as to strike to try to prevent a pay cut.
CUEA poured hundreds of thousands of dollars into the last election to get their candidates elected.
At their first meeting, the union's board voted in closed session to kickback their primary donor, CUEA, then mislead the public about it for weeks.

In a time of financial crisis, this board has given back to its benefactor repeatedly and done little to maintaining the financial solvency of CUSD.

That is why we are $100 millions in debt.
The solution is not to give more money to crack addicts.

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jollygirl

10:37 am on Sunday, January 8, 2012

Again...these are your opinions, not facts. And I am assuming that you will continue to make this personal...too bad. It just serves to distract from the issues and makes assumptions that are as erroneous about me as they are about the issues.

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shelly

1:04 pm on Sunday, January 8, 2012

Capo mom,
In case you haven't noticed (and maybe you haven't because you have a singular intent on blaming everything on teachers and the union) the whole state, country and world is one big financial crisis not because of teachers and unions but because of banks, corporations and people's irresponsible spending habits.

You are right the former board did give back to some of its benefactors when 4 of the 7 trustees did not recuse themselves from voting to award their "benefactors" and supporters settlement money. Conservative voters of CUSD did not like this fact that was reported in the OC Register which is an extremely conservative paper. I also believe that many parents and voters did not like the way the former board treated and spoke about teachers. You can label them as pensioners or union but they are teachers first. And they work with our kids. If these teachers are so bad and greedy and not as intelligent as other professionals (as you have stated before) and our CUSD schools so bad then why do you, Capo mom, have your children in CUSD schools?

The economy tanked and we have a choice. We can choose not to help and whine about how we pay too much and its everybody else's fault or we can temporary help education right now until the economy picks up so that schools and programs will not need to be drastically cut. Education is the key to everyone's future. All of us.

Do we value education or not?

Who exactly are you calling crack addicts?

Penny Arévalo

7:54 am on Sunday, January 8, 2012

This article doesn't say CUSD is $100 million in debt. It says it's not getting $100 million promised it on time. $75 million of the short-term loans will be paid back by April. We'll be $21.3 million short by the end of the year. but that money is coming next fiscal year. It's a cash-flow problem, not debt.

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Jim Reardon

8:20 am on Sunday, January 8, 2012

Penny, I think your article does say that CUSD is $100 million in debt. At paragraph 4, "The combined $100 million in loans represents 27 percent of the district’s $372-million budget."

I think it is fair to say that if you have $100 million in loans, you're in debt.

CUSD may be able to payoff some of this debt by April, assuming the state follows through on their commitments, but more than $20 million in debt will remain at the end of the budgetary period and CUSD will be going right back to the borrowing window at the beginning of the next fiscal year. How much money they'll need at that time depends on the new state budget -- yet unseen.

If I can make a prediction, the state budget will include revenue from the as yet unapproved tax increases proposed by the Governor. Thus, we are shown another house of cards. Just as the current budget counted almost $2 billion in revenue from dissolution of the the redevelopment agencies, the next budget premise assumes the voters will tax themselves. And in just the same way, the revenue estimate from redevelopment was overestimated by $800 million. And the revenue estimate from the proposed tax increase are vastly overestimated as well.

Everytime CUSD goes forward under such conditions, it faces an increase in deferred state support. The deferral will break the back of the district.

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Penny Arévalo

12:12 pm on Sunday, January 8, 2012

Yes, it's debt in the sense that it's a loan that must be repaid. I did think of that as I was writing. The difference between this debt and say a mortgage is that when we take out a mortgage, we HOPE we can continue to work at the same wages that would pay off the loan. With the schools, they are guaranteed that money. It's a sure thing. (Until it's not, which I recognize, is the concern of many critical of the state's budgeting over the years, that someday, the house of cards will fall.)

jollygirl

9:01 am on Sunday, January 8, 2012

Would it be possible to clarify again why districts use borrowing to balance budget sheets? As I recall it has something to do with the fact that they are required by law to balance and since revenues come into the district after the budgets are required to be balanced they must use this accounting practice to do so. I am not a financial wizard so please put it in language that we can all understand if possible.
Would it be fair to state that many (dare I say most) districts are doing the same thing? Would it be fair to say that the bottom line is that many (most) districts do not have enough money to meet their financial obligations if revenues from the state are reduced?
Would it be fair to say that reduced revenues from the state are due to reduced revenues TO to the state?
Would it be fair to say that reduced revenues to the state are the result of a faltering economy?
Would it be fair to say that some are using this statewide financial crisis to make it look like CUSD is in this position because of financial mismanagement?
Would it be fair to ask those who do to specifically answer my question of how much of a pay and benefit cut they would suggest to solve the crisis in CUSD?
And would it be fair to ask Capo mom to deal with the issues and quit her mini vendetta against posters she doesn't agree with? No one cares who I am. It doesn't matter dear.

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Capo mom

11:11 am on Sunday, January 8, 2012

There are lots of ways to balance a budget. But school districts use borrowing because they can. It is as simple as that. This makes the idea of a balanced budget fantasy.

Many, though not all, districts are doing the same thing. But not with the same duration and frequency nor to the same extent as CUSD. Saddleback's debt to revenue ratio is about 18% of their budget. CUSD's is 50% higher. CUSD's use of TRANS as a funding instrument in a crisis predates the state's economic woes. TRANS are normally required to be paid off in the same fiscal year, not rolled over. According Penny's statement above 45% of districts in California are doing this. The game CUSD is now playing is similar to check kiting. And there is a cost to it. That cost diminishes funding for students.

Every district in California must placate the unions. This is particularly true in CUSD where union went so far as to install its own board. CUEA went out on strike and used hundreds of thousands of dollars to defame last people who proposed a concrete plan to deal with the issue.

jollygirl claims to be "interested" in education in CUSD but doesn't live here and has no children who attend our schools. Her interest here is personal income.
That does matter.

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shelly

12:33 pm on Sunday, January 8, 2012

Capo mom,
Districts are funded differently in California.

We do not have a union board. Our current board has 4 reform trustees and 3 non reform trustees. Even if we had the former board we would be facing this financial crisis. It is a statewide crisis for education.

Every district in California has teachers. Teachers are not the bad guys and they did not cause the financial crisis in our state. They did not cause the economy to tank or education funds to be reduced.

Please tell us the concrete plan the "last people" had. 4 of those "last people" are still on the board and control the vote. The conservative voters of CUSD elected the whole board.

I have 4 children who attend 3 CUSD schools and I do have an interest.

You state, "There are lots of ways to balance a budget." Please tell us several. Please be specific to CUSD.

I have one for you. Pay a tad more in taxes and take personal responsibility instead of expecting others (the teachers, administrators and staff) to be the only ones who help during this crisis. I am tire of the mantra, we pay enough. No we don't if we are unable to keep our schools open. And we need to educate our kids. All kids not just the rich ones who can afford private education.

CUSD has good public schools. We have good teachers and if we didn't parents would be up in arms but they are not.

And again I ask you, do you speak to retired firefighters and police officers the way you speak to retired teachers?

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Capo mom

12:36 pm on Sunday, January 8, 2012

"Actually, to be truthful, the major contributor to calSTRS pensions are the proceeds from investments of the fund. Your analysis of my post shows that you are really only interested in one thing...making sure that people know that you think you know who I am and what my motives are. Not very interesting to anyone else. And very unsuccessful in getting me to go away."

jollygirl, I have no interest whatsoever in making you go away. You are an excellent foil for demonstrating of all that is problematic with public education in California.

It is a myth that your pension is funded by the proceeds of CalSTERS investments. The state guaranteed return for CalSTERS in currently 7.75%. CalSTERS underlying asset value (which were heavily invested in green energy and commercial real estate) has declined in the current economy. While some enjoy life at the beach, California taxpayers and individual school districts are left holding the bag.

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jollygirl

12:45 pm on Sunday, January 8, 2012

Where do you think the rest of the funds come from? And you find that teachers are the problem in public education?

Making insinuations about my motives is how you approach most of the issues. No one will every agree on everything. The key is to work for a solution. If your solution is to balance the budget of school districts using only the salaries and benefits of the employees would you please give a figure as to what percentage of a decrease you would deem necessary?

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Capo mom

1:06 pm on Sunday, January 8, 2012

At least be honest jollygirl.
You aren't a teacher now.
I know where the funding comes from - that is why I am concerned with fiscal responsibility at the district level.

The more interesting questions are;
Where do you imagine the rest of the funds come from?
And given that voters have already failed to pass taxes to finance schools, how do you propose to resolve this situation.

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shelly

1:27 pm on Sunday, January 8, 2012

Capo mom,
How do you propose to balance the budget since you have stated, "There are lots of ways to balance a budget."

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Capo mom

1:34 pm on Sunday, January 8, 2012

Pick a fiscally responsible alternative.

What would you propose, shelly?

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jollygirl

1:37 pm on Sunday, January 8, 2012

And will you be honest in return? Are you really a Mom? Where do you live? Do you care about everyone's child or just your own? What is your source of income? Did you earn it honestly or are you profiting at the expense of someone else? Do you have a vested financial or political interest in returning one or more of the former board members? Is this about you? Or me? Is it in everyone's best interests to work together to find solutions? Or would it be better for you if the district failed and you had a voucher to go to a private school? Would your child be guaranteed a place in that school regardless of ability, race, religion or how much you donated?

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jollygirl

1:42 pm on Sunday, January 8, 2012

BTW, I plan on voting for the tax increase because, whether or not I have children in school (since that is not a requirement to have an opinion or a stake in public education), I believe a strong public school system benefits everyone. And I want the best candidates to consider teaching as a profession.

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shelly

2:09 pm on Sunday, January 8, 2012

Capo mom,
I already answered it above. I will vote yes on the tax proposal. I value public education. I don't want a shortened school year or more kids in the classroom or more programs cut. We are in a financial crisis and I will vote to be part of the solution.

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Capo mom

2:20 pm on Sunday, January 8, 2012

jollygirl since you believe these issues are relevant, will you answer your own questions about yourself before you put them to others?

Since you haven't done so, what are we to assume from your failure?

Here goes, for my part.
I am really a mom.
I live in San Juan Capistrano.
The source of my income is my paycheck, not a pension.
I come by it honestly.
I have no financial interest in school district politics. Can you say the same?
This isn't about me.
It might be about you.
Define "best interests" and I'll answer whether it is in everyone's best interests to work together.
It is immaterial to me whether the district goes bankrupt and I got vouchers for my children to go to private school. How might that effect you?
My children and everyone else's are guaranteed a free and appropriate public education. Isn't that great?
My family has donated between 8% and 11% to charity for the last 10 years. About half of that has gone to education. You? Contributions to political causes or unions don't count as charity.

Your turn ... and since you think everyone else can afford a half percent increase in their sales tax, please do answer how you imagine CalSTERS is really paid for and whether one of the primary benefits of the proposed tax increase will be propping up CalSTERS?

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jollygirl

2:50 pm on Sunday, January 8, 2012

Let's see what is relevant here...
I am a stakeholder in CUSD just like you.
I am a Mom too :).
The source of my income has been come by honestly just like yours (although without knowing the source it might be debatable about how honestly you came by it).
I also have no financial interest in school board politics (and am not friends with or related to anyone who might run or who has run).
As stakeholders it is about both of us...but no more than any other stakeholder.
I do not wish CUSD to go bankrupt (whether or not they pay my salary). I am a strong believer in public schools which do not choose who attends. I think that is the best and only way to guarantee a free, equal education to all. If that is not happening then it is up to us to make sure it does.
I have donated more money than you have to the public schools...and that is a guarantee with a cross my heart added on.
And calSTRS is funded through contributions from employees, districts and the state. The benefits are paid from the proceeds made by investing those funds. And those funds are secure for the next 30 years or so...even with the losses sustained through investments (which mirror those losses made by every other entity who invested). No one is questioning whether the fund was negligent in their fiduciary responsibility...too much oversight for that. Solutions for potential actuarially predicted shortfalls over the longterm are already being addressed. The nov. tax will not be used for that.

concerned parent

1:04 pm on Sunday, January 8, 2012

There's been a huge migration of middle, upper middle and wealthy people from California in recent years, as well as businesses that have abandoned the state for friendlier state. (I personally know FIVE families who moved last summer, all out of state, to better their economic situation. Two families had grown up here, had their relatives and friends here, and had to make a very painful decision to leave. California can't keep raising taxes on working people, lowering services for the middle class, and ignoring the needs of businesses, while supporting a growing lower socio-economic demographic.
Here's some info on population trends:

"California's population grew less than one percent between July, 2008 and July, 2009 according to official population estimates released by the State Department of Finance. The figure represents 353,000 new residents during the fiscal year, despite the fact that many Californians are leaving the state for jobs and a lower cost of living.
The increase is attributed to higher birth rates. The rise in new births is the primary source of growth in California in the last year with 547,000. However, net migration contributed just slightly more than 37,000 new residents. The state gained over 179,000 new foreign immigrants during the year, and lost an estimated 142,000 people to other states."

This matters in the context of CUSD because the district, just like the state, has failed to deal responsibly with pension & salary reform.

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shelly

1:23 pm on Sunday, January 8, 2012

Concerned Parent,
"A report from the Public Policy Institute of California shows the poor are more likely to leave California than the wealthy.

Tax critics often claim the state's high cost of living and tax structure drive high-income earners out.

The institute study, released Friday, found the rich — those in the top 20 percent of income earners — leave California at about the same rate as they arrive.

When they do leave, states with no income tax such as Nevada, Texas and Washington are among their top destinations. Those states also are among the top draws for the bottom 20 percent of income earners.

Texas and Washington also export some of their wealthiest residents to California each year.

The report is based on data from the state Department of Finance and the U.S. Census. "

http://www.ppic.org/content/pubs/jtf/JTF_LeavingCAJTF.pdf

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jollygirl

1:27 pm on Sunday, January 8, 2012

Concerned parent,
It is no secret that the state is in financial crisis and many families are affected. That is exactly my point. This is a statewide (countrywide, and worldwide) financial crisis. Leaving the state may or may not help. But it is certainly their right to do so.
Where I disagree with you is that CUSD can solve the crisis. They have no power in pension reform. They can lower salaries and they have done so. They can (and most likely will) lower them more. Do you have a percentage that you would deem acceptable? The families that you mention did not leave the state because of anything that CUSD did or did not do. But the families of teachers may.
As for the state...at some point diminished revenues will have to be replenished. People leaving the state are taking their taxes with them...leaving you and me to make up the difference...or learn to live with fewer of the benefits our taxes pay for. A shorter school year, longer response time for emergency services, potholes, fewer social safety nets for those who need them...all of these are already happening. How much more are you willing to sacrifice before you realize that paying .5% more in sales tax and asking people making over $250,000 to pay a little more tax is something that you can handle? It looks like we may find out.

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shelly

1:39 pm on Sunday, January 8, 2012

capo mom,
The data came from the census. Yes the data is old as is the data that Concerned Parent is citing. I will try and find more recent data.

Also,
How do you propose to balance the budget since you have stated, "There are lots of ways to balance a budget."

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Capo mom

1:47 pm on Sunday, January 8, 2012

"As for the state...at some point diminished revenues will have to be replenished."

Really ??????
Why?

People with means move to protect their assets.
People without means stay put.

Read Steve Jobs biography. How do you think California will be attractive to future wealth creators if they must pay for the idiocy of the past?

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Capo mom

1:49 pm on Sunday, January 8, 2012

Balance the budget?
Don't spend more money than you have.

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jollygirl

1:59 pm on Sunday, January 8, 2012

Capo mom, you are a master of ducking the questions. Don't spend the money on what? Come on I know you can say it...do you mean spend less money on salaries and benefits (they have no control over pension benefits since that is decided at the state level)? Be clear. And tell us how much you would be willing to cut there. And would you be willing to cut more next year and the year after that? Whatever it takes, right? And when all of the teachers have left because they can't support their families here, we will have brand new teachers who are less expensive. Right? And they can do the job just as well...you have statistics to prove that, right? So when was the last time you requested that your child be placed in the brand new, cheaper, teacher's classroom? I agree with you...there are some very capable, even brilliant, new teachers. I have worked right alongside of them. And I helped them through many new teacher issues...including how to deal with a difficult child, parent, lesson that didn't go well. But you don't need expensive teachers like me. I will eventually drain the trough with my pension. Keep teachers around for a year, or two or even 5. Then expect them to keep the same salary without raises or benefits for the rest of their career. They'll hang around just for you. Or they won't and will be replaced. No problem. No one ever benefitted from experience...in any field.

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shelly

2:02 pm on Sunday, January 8, 2012

Capo mom,
That is simple. Why don't you tell us how that will work for CUSD. Please be specific. Please tell us which programs you will cut. How many more kids will you put in the classroom? Since you have stated that you understand the funding and the budget please let us know what specifically you would do to balance the budget in CUSD. Thanks.

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Capo mom

2:28 pm on Sunday, January 8, 2012

jollygirl,
please tell the truth.
You are not currently employed as a teacher.

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OC Mom

2:43 pm on Sunday, January 8, 2012

I totally agree with you. Jollygirl would rather pepper Capo Mom and others with personal questions trying to find out their identity and intimidate them. Shelly and Jolly dominated OC Register blogs during the school board election and have a proven tactic of intimidation and harrassment of others who have different viewpoints than theirs.

The middle class is leaving CA. What Jolly and Shelly don't realize is that the more taxpayers who leave will in fact leave them with large masses of people on unemployment or welfare. I also know of 4 families who've relocated in the last year. Companies are relocating to other states as well. Raising taxes is not the answer. Learning to live within the budget like most families are doing these days and cut things that aren't necessary is what needs to be done. Most people have taken a hit to their income and teachers should be able to

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jollygirl

3:00 pm on Sunday, January 8, 2012

OC Mom,
Since the irony was lost on you...the purpose of my questions to Capo mom was to highlight how personal information is not relevant to this discussion. As you can see she was just as reluctant to share such information as I am. And yet she continues to post misleading information about who she thinks I am in order to make a point. I don't care who either of you are. Mr. Reardon chooses to post as himself. Good for him. I would really prefer to do that but I tried that once and it backfired with negative consequences so I no longer do. I would appreciate it very much if Capo mom would back off on her cyber stalking and get on with the issues.
You all may be very nice people. I am. I am really quite a nice person and thought of very highly of by people who know me. I am close friends with people who have different views that I do. We treat each other with respect when we discuss those views. I wish we could do that here.

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shelly

3:06 pm on Sunday, January 8, 2012

OC Mom,
Please cite your sources where taxpayers are leaving. The source of the Public Policy Institute of California is the US Census.

I know multiple families who have moved here and have left private schools to attend CUSD schools either because they can no longer afford them, the private schools did not have high level AP classes or they have conflicting discipline policies.

If you read the comment board of the OCR maybe you read some of the vulgar insults that were written towards me. I try not to insult or attack. I question. I also check my facts and try not to post anything that I have not cited or read because it is so easy to google facts. Please post some of my "intimidating comments".

I have never commanded anyone to "Go away!" simply because I don't agree with them.

My agenda is my children, public education for all and respecting people for who they are. I am a parent. Really! That is who I am, a parent, who is concerned about my children's education and public education. I am willing to be part of the solution for education and plan to vote yes. If the public chooses not to pay a little more in taxes then we have not one else to blame.

If we simply must spend what we receive then schools would shut down now becaue of the way schools are funded. If we choose to simply spend only what we are currently receiving then we must cut programs, increase class sizes and shorten the school year. It is our choice.

jollygirl

2:36 pm on Sunday, January 8, 2012

Gosh Capo mom, you didn't answer my questions and you expect me to answer yours? I am telling the truth. I am a stakeholder just like you. You don't care to divulge personal information here and I agree. Your obsession with me and my personal information is getting a little creepy. Let's just stick with the issues.
Could you answer Shelly's question since that is really more relevant to the conversation?

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Capo mom

2:59 pm on Sunday, January 8, 2012

I know you are not a particularly careful reader , jollygirl but I did answer your questions, all of them.
One would think if you thought the answers to your own questions were relevant to the discussion you'd offer them. But then actions speak louder than words.

As for shelly's question, How not spending more money than the district doesn't have would works in CUSD?
Rather well-that would be my answer.

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shelly

3:13 pm on Sunday, January 8, 2012

Capo mom,
"How not spending more money than the district doesn't have would works in CUSD?
Rather well-that would be my answer."

So as per budget projections you believe cutting more programs, increasing class sizes, shortening the school year will work, "rather well" for CUSD schools and our children's education?

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jollygirl

3:15 pm on Sunday, January 8, 2012

Capo mom, you are having the same difficulty I am in locating the responses to your posts. This thread is getting a little hard to navigate...which may be a indication that it has outlived its helpfulness. Scroll up to find my answers. They appeared in your email before they appeared on the board...which often happens. Is that why your posts are the only ones that are duplicated two and sometimes three times in my email? Be patient before you post again. My ego can't take more than one copy of them. Or we could start over and let all the personal stuff go and stick to the issues? I will if you will...

shelly

3:35 pm on Sunday, January 8, 2012

Capo mom,

It is really up to us, the public. Vote yes or vote no. In a finacial crisis people must prioritize and sacrifice. It is up to us to make the choice. But then we must accept the consequences and resist the urge to blame others for our own choices. Teachers and unions will not be the ones to blame.

Here is a link to information about a country that values education and educators. And hey its public education. And hey the teachers are unionized and hey, Finland is number one in educating their children.

http://www.theatlantic.com/national/archive/2011/12/what-americans-keep-ignoring-about-finlands-school-success

Also,
http://blogs.edweek.org/edweek/state_edwatch/2011/11/_my_conclusion_is_that.html

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jollygirl

3:49 pm on Sunday, January 8, 2012

Shelly...this is a great link. It is interesting that Finnish doesn't have a word for accountability and consider it what is left without taking responsibility. Here is another link with a well respected methodology among early childhood educators. It could also be posted on the Transitional Kindergarten thread...which I will do. But it also belongs here as an example of how teachers, parents, and communities worked together to come up with some amazing innovations which have lived on successfully since WW2.
http://en.wikipedia.org/wiki/Reggio_Emilia_approach
This is not an expensive school to run since everyone does their part.

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RSM Dad

8:38 pm on Sunday, January 8, 2012

For Shelly and Jolly Girl- All rhetoric aside just answer this simple question- Assuming the tax increase fails in November, what is YOUR solution to balancing the budget? Salary cuts or shortening the school year? And remember if this is all about "the children" and you tell me that shortening the school year is better, then I would like you to justify it. Do you think either of you can handle my simple request?

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shelly

9:16 pm on Sunday, January 8, 2012

RSM Dad,
The solution will be to both shorten the school year and cut salaries and cut programs and increase classroom size. That is the reality. Correct. There will not be enough money to cover the costs of education. My children are students in CUSD schools so they will be affected along with all the children of CUSD.

As a parent I dont expect only others to sacrifice for my children. Do you?

So what is your solution? There is not enough money to cover the budget due to the poor economy. Do you object to paying a little more in taxes to cover education until the economy recovers? And remember this is all about the children. I won't put the children in quote marks because it really is about the kids and their educaiton.

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shelly

9:31 pm on Sunday, January 8, 2012

RSM Dad,
How will you vote on raising taxes for education? yes or no? and if programs are cut and class sizes increased and the school year shortened are you willing to own your vote and the consequences without putting all the blame on the teachers, administrators and union when schools are drastically cut?.

I believe that it is not only the responsibility of the teachers, administrators and staff to fix the financial crisis in our state. I believe that we also have responsibility? Do you believe that we have no responsibility?

I plan on voting yes. I teach my kids that we are all in this together. And you should never ask others to do something that you are not willing to do yourself.

jollygirl

9:17 pm on Sunday, January 8, 2012

So you think that if the tax measure fails the teachers (and other district employees) should make up the difference? I disagree. That would be like asking them to work for 3 weeks for nothing. You have quite a sense of entitlement there Dad. That is not to say that no further cuts in salary are possible. Teachers are steeling themselves for that possibility. However if state ADA ends 3 weeks early the schools should close.

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RSM Dad

9:34 pm on Sunday, January 8, 2012

Shelly, I think JG pretty much layed out the union party line you seem to support. Screw the children on education but don't cut salaries. Just about every other public employee in the state is taking cuts, but not teachers. Screw the children. They don't need the classroom time. Your solution is balanced but you will never convince the union hacks like JG to compromise. As far as the tax increase, never will vote for one until the state gets its head out of the sand and makes an honest effort to reform te system as a whole. Why don't we start with abolishing categorials?

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shelly

6:17 am on Monday, January 9, 2012

RSM Dad,

How about my opinion be a parent party line because that is what I am. I support what is best for the children of CUSD.

Teachers all over California did take a paycut. CUSD teachers took a paycut. So essentially you are saying that teachers should always take a paycut no matter how drastic, and parents and taxpayers (who are also teachers ) have no responsibility.

So for you it seems it really is not what is best for the children but it is political and what is best for you and your agenda.

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shelly

6:30 am on Monday, January 9, 2012

RSM Dad,

As I said before I am not going to ask others to do something I am not willing to do myself.

My state and my district are in a financial crisis. And I don't plan on folding my hands and blaming others because I don't like it. We are all responsible for this crisis. Do I think some money has been misspent. yes. But I will try to help during this crisis because it is a crisis and will affect the children if I don't. I will vote yes. My agenda is for the children. I do not want more programs cut, bigger class sizes and shorter year.

jollygirl

10:11 pm on Sunday, January 8, 2012

RSM Dad, you asked what I think and I gave you my opinion. I don't speak for the union and I don't speak for every teacher. And did you read my reply? I said that more salary cuts would probably come. But if you are asking teachers alone to make up the difference if state funding is cut for 3 weeks then my vote would be for a 1/2 percent increase in sales tax for everyone. Why would you expect teachers to do your fair share and theirs as well? And that is exactly what Shelly said. Why am I am a "union hack" and she is offering a balanced solution when we said the same thing?

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James Schumaker

8:36 am on Monday, January 9, 2012

Reviewing all these comments, it seems to me that there has to be a better and more dependable way to do up a budget in order to eliminate funding uncertainties. The TRAN loan process seems to create a natural budget trap for schools, and they have to walk right into it -- they have no choice. Taking out loans against state government funding promises is a pretty tricky business, and the way things are now, school districts are going to be caught short time after time. Maybe while he's at it, Governor Brown should take a crack at revising the way schools are funded that will give us all a little more certainty. Not being a budget maven, I don't know exactly how that could be done, but there must be a better way. It may be that other states have a better system and can show us the best way to get out of this mess.

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Capo Parent

1:17 pm on Monday, January 9, 2012

Moonbeam is promising to make deep cuts to education, public safety and parks to scare the public into voting for his tax increases. Nothing like playing on the fears of others. Moonbeam wants roughly $6 to $7 billion in new taxes, yet his proposed budget has an increase in spending of roughly $6 to $7 billion. Given the size of the state budget deficit, why didn't he freeze expenditures to the level in last year's budget? When dealing with Moonbeam, the devil is in the details.

As for CUSD, it is clear a solid majority of the board is in the union camp. How else can one rationally explain the board voting to open an existing contract and increase the amount of medical benefits teachers get at the same time it is looking at millions of dollars in cuts under the best of circumstances? Don't forget, teachers are also still getting step and column increases, i.e. higher wages. As an unnamed pundit once said, "We be s*rewed!"

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shelly

4:05 pm on Monday, January 9, 2012

Capo Parent,
When someone wrote a comment on the Governor Brown's proposal of raising taxes on people who make $250,000 or more you wrote, "So, if citizens have had drastic cuts in pay, benefits and retirement, but are still working, they should gladly give up more of their hard earn money to support others, nothwithstanding the cuts they have alread suffered. You're kidding, right?"

So do you believe that teachers should be asked to "pay more" by having their pay and benefits cut more even after taking pay cuts? They took an over 6% pay cut. They only make on average $75,000. No teachers makes anything close to $250,000.

Currently there are 4 reform trustees who were also on the former board and 3 non reform trustees. The reform trustees have a majority. Who is the solid majority in the union camp? The 4 reform trustees all ran against union endorsed candidates.

There is currently not enough money in the state to cover education, public safety, parks, etc. so in order to make things work the state must cut programs or raise taxes. The Governor is giving the public a choice since the legislator is not choosing. It is the public's decision. Yes or no. Cuts or not cuts?

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shelly

4:08 pm on Monday, January 9, 2012

Capo Parent,
Step and column increases I believe only occur after 5 year increments so teachers only get raises after working for the district for 5 years or if the teacher gets a higher degree on their own dime. They invest years of studying and thousands of dollars and bring the knowledge back to our district. And by staying in our district for five years and longer they keep their knowledge, training, experience, talent in our district.

OC Mom

4:39 pm on Monday, January 9, 2012

Shelly,

Thanks for your latest comment reminding me that the average teacher in CUSD makes $75K a year. Not too shabby. Especially when you consider that the majority of teachers are women who are usually married and may actually be in an over $250K a year household. How many teachers are married to other teachers, principals, water district employees, firefighters or other government employees. Most teachers are not the put upon individuals that the teacher's union would have us think they are. The one's I feel sorry for are the new teachers who have student loan debt and no income either because they can't find a job or they were laid off in order to keep a higher paid "tenured" teacher.

There are many people in the private sector who have taken paycuts in order to stay employed in this economy. There are others who I speak with who have twentysomething kids with college degrees who can't find work or are working for very little money. Why should "tenured" teachers immune to paycuts? I agree with previous posters that raising taxes isn't going to fix this problem. The money is never spent the way it should be and the taxes are rarely decreased once the crisis passes.

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shelly

5:46 pm on Monday, January 9, 2012

OC Mom,
Teachers deserve a living wage. Are you saying they are paid too much?

What does being a woman have to do with anything? This is not the 1950's and being a teacher is not a hobby so that a housewife can bring in a little something extra for the cookie jar. Teaching is a career, a profession. Men and women both teach and support and raise families earning a living.

And if the combined income of a teacher and his or her spouse (man or woman) is $250,000 or more than they will be subject to the higher tax proposal. So what is your point?

I asked Capo Parent to clarify his statement. Read it.

Are you saying that teachers with mortgages, bills, families, college loans of their own and for their own kids should make way for kids right out of college? Are you stating simply because new teachers have loans that they should have a job over a teacher who has experience even though this teacher has no experience and may in fact not be a very good teacher because he or she has not been tested in the classroom. College professors have tenure. Public school teachers do not.

If the money is not there to hire the new teachers and you want them to be hired then vote yes.

jollygirl

5:12 pm on Monday, January 9, 2012

OC Mom, Surely you aren't suggesting that a teacher's salary should be based on what his/her spouse makes? Would that hold true for everyone? Should there be a law that you can't make over a certain amount if you are married? Is this just for women or should men also make less if they are married? What if that new teacher who got laid off is married to a professional who makes over a certain amount (say $150,000)? What if they finished school without incurring student loans? Should that be taken into consideration in your scenarios.
And should teachers who make more be laid off so that those who make less can be kept?
Do you acknowledge that teachers also have taken pay cuts?

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concerned parent

5:23 pm on Monday, January 9, 2012

Actually, what SHOULD happen is that teachers be hired/promoted/paid/fired based on merit in addition to length of tenure, just like is done in every other profession. Those who are the most effective in their jobs should be rewarded. But union rules prevent that, don't they?
BTW, how many teachers are there left in CUSD who HAVEN'T taught for at least five years, if that indeed is the basis for step increases? All of those teachers have been pink slipped, have they not? Also, I don't know many other jobs, professional or otherwise, where you can make an average of $75,000 a year, with first-class benefits, and not work an entire year.

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shelly

5:52 pm on Monday, January 9, 2012

Concerned parent,
$75,000 is an average. A first year teacher does not receive $75,000 or first class benefits.

If administrators do their jobs then teachers are hired, promoted and fired based on merit. I agree those who are the most effective in their jobs should be rewarded. How do you measure this?

jollygirl

5:42 pm on Monday, January 9, 2012

concerned parent, teachers are hired on merit (everyone concerned wants the best new teachers) unless they have too much experience. They can be placed on the salary scale for up to 10 years experience. After that they receive no credit. So if a teacher has been teaching 15 years in another city or state, no matter how good they are, they will be placed on the salary scale at the 10 year level. This prevents many teachers from leaving their district and is a hardship for an experienced teacher with a spouse who is transferred, requiring the family to move. Actually teachers can get step increases every year until the 12th year. At that point they receive a step increase only every 5 years. All step increases cease at 24 years with no further step salary advancement possible after that, no matter how long the teacher remains in the job. Column increases are possible for every 15 units of post graduate work up to a maximum of 75 units (which must also include a master's degree. And there are few teachers left who have taught for fewer than 10 years. Tenure has not saved those teachers who were laid off. A few have specialized credentials and less than 5 years experience...but not many.
As for merit pay...most teachers (and unions) have advocated for various forms of merit pay. The problem comes in determining how to define merit. Merit in most professions is determine by expertise and experience. Expertise is a very subjective term and very difficult to measure.

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jollygirl

5:46 pm on Monday, January 9, 2012

Expertise can be measured by extra training, leadership capabilities, and in some cases, productivity. Training and leadership are easy to measure for teachers and the current methods of determining salary work to do so. Productivity is not easily measured for teachers. No widgets or financial profits to count. Test scores don't work...too many outside factors affect them.

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Capo Parent

10:14 pm on Tuesday, January 10, 2012

Given your comments, then I assume you agree tenure for teachers should be abolished, and teaching jobs should be based on merit, not time on the job. I understand that defining merit is not easy, but it can be done in a reasonable, appropriate manner to address legitimate concerns regarding how merit is to be measured.

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shelly

7:37 am on Wednesday, January 11, 2012

Capo parent,
Public school teachers do not have tenure.

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