June 21, 2012 Board Meeting
4:30 p.m. Closed Session
6:30 p.m. Open Session
9.0 CONSENT AGENDA
9.1a Approve Grants, Entitlements and Other Income Agreements, Ratification of Other Agreements, Approval of Bid Awards, Approval of Declared Surplus Materials and Equipment, Change Notices and Notices of Completion
10.0 BOARD WORKSHOP/STRATEGIC PLAN AND OTHER INITIATIVES
11.0 BUSINESS AND FINANCIAL INFORMATION / REPORTS
Contact the Board of Education Office at (916) 643-9314.
Response to Public Comment
1. How will we get class size reduction funding if we are raising class sizes?
Response: Larger class size will result in funding penalties but the district will still receive class size reduction funding from the state.
2. Why do we have a higher reserve than we need to?
Response: At the time of the Adopted budget, you will normally see a reserve that is higher than 2%. As categorical expenditures are added to the budget throughout the year, the amount needed to meet the 2% requirement increases but the district is not in a position to make additional budget reductions to fund the larger reserve throughout the year. Categorical funds cannot be used towards this required reserve. By year end, we must be at the required 2% at a minimum. In addition, the board and superintendent are making every effort to increase the reserve above the 2% required level to maintain fiscal solvency. Higher reserves can offset potential future budget reductions. If the district had sufficient reserves, it would not be forced to make the difficult budget reductions in place for the 2012-13 year.
3. Why doesn’t management consider a higher reduction in salary? Other state management workers are paying more towards their benefits.
Response: Management employees do not “receive” health and welfare benefits; they must pay for 100 percent of health and welfare benefits. As costs continue to go up, management has paid 100 percent of those increased costs. As part of the Board-approved budget reductions, unrepresented management agreed to five non-contingent furlough days and seven contingent furlough days in addition to freezing step increases.