Transcript Slide 1

SCHOOL DISTRICT
REORGANIZATION
Vicki L. Barber, Ed.D., Superintendent
Terena Mendonca, Deputy Superintendent
El Dorado County Office of Education
El Dorado County
2011
Purposes of Presentation
• Provide General Information
– Process
– Implications
– Options
• Financial Implications
• Employee Issues
El Dorado County Office of Education
3
Background
• The recession has taken its toll on all public
programs
– State General Fund revenues are down
more than 14% since 2007-08
– K-12 funding for general purpose functions
is down more than 10% and most
categorical programs have been cut 20%
4
Background
• School district consolidations provide an opportunity
to increase revenue limit income and reduce local
costs
– Current law (Education Code Section [E.C.]
35735, et. seq.) provides for a permanent
increase to the base revenue limit
– Consolidations provide opportunities to
capture economies of scale and reduce or
eliminate duplicative functions
5
Why Look at Reorganization?
• Consolidate some services, i.e.:
administration, pupil personnel
services, library services, etc.
• Improve fiscal status – increase
state aid and/or reduce
expenditures
• Facilitate economies of scale
• Provide more options for students –
improve educational offerings
El Dorado County Office of Education
6
Reorganization Options
• Territory Transfers/Unionization
• Unifications
• Lapsation of a district
• Transfer Junior High Students
El Dorado County Office of Education
7
Petitions
• Initiated by the Electorate
– 10% registered voters
• Initiated by the County Committee
– 25% registered voters
• County Committee
Directed
• Local Governmental
Agency
El Dorado County Office of Education
8
New or Consolidated
• Consolidate districts by transfer of
territory
– eliminate one district and
transfer into existing district.
District A becomes bigger,
contracts continue in place
– Can have a waiver to require
a new governing board
election.
El Dorado County Office of Education
9
New or Consolidated
• Create a new district
• Dissolve two or more
elementary districts and
create new one
• Initiated by the electorate or
by majority of boards
Elements of a Petition
• Petition
• Boundary Description and
Maps
• Rationale for Reorganization
• Analysis and Conclusions
based on State’s 10 criteria
• E.C. Section 35705.5 Provisions
• No Adverse Affect on School
District Organization
• Agenda and Minutes Public
Hearings
El Dorado County Office of Education
11
State’s 10 Criteria
• Adequacy of Size
• Substantial Community Identity
• Equitable Division of Property and
Facilities
• Not promote Racial/Ethnic
Discrimination/Segregation
• No Substantial Increase in State’s
Costs
El Dorado County Office of Education
12
State’s 10 Criteria (Cont.)
• No Disruption of Educational
Programs
• No Significant Increase in Housing
Cost
• Not Primarily Designed to Result in
Significant Increase in Property
Values
• Not Cause a Substantial Negative
Affect on Fiscal Management/Fiscal
Status of Affected Districts
• Any Other SBE Criteria Prescribed
El Dorado County Office of Education
13
AB 174 Streamline Option
• Streamlines the process for
specified school district
reorganization
– If affected school districts and
county superintendent of
schools consent, and
– If an agreement to share
CEQA costs exists
• Eliminates approval or disapproval
at the state level by the SBE
• Clarifies CEQA responsibilities
El Dorado County Office of Education
14
AB 174 Concerns & Benefits
• Concerns
– Support from the governing
boards of affected school
districts and county
superintendent may not be a
guarantee that no local
controversy exists
• Benefits
– Process for local school
district organization is
simplified and streamlined
– Local county committee
empowered to make local
decisions
El Dorado County Office of Education
15
E.C. Section 35705.5 Provisions
• Rights of the Employees
• Revenue Limit
• Governance by Provisions of City
Charter
• Governing Board Composition (5 or
7) and Trustee Areas or Election at
Large
• Election Area
El Dorado County Office of Education
16
E.C. Section 35705.5 Provisions, (Cont.)
• Whether the Proposal Creates 2 or
More Districts and Whether the
Proposal Will be Voted on as a
Single Proposition
• How Property, Obligations, and Any
Bonded Indebtedness Will be
Divided
• First Governing Board Election and
Terms of Office
El Dorado County Office of Education
17
Other Issues in the Process
• Public Hearings in Each Affected
District
• Estimated Timelines: 2 – 3 Years
• Election Needed (Unless territory
uninhabited or comprises less than
10% of assessed valuation of
district transferring territory and
Governing Boards agree or Waived
by SBE)
El Dorado County Office of Education
18
Elections
• When?
– Next Regular Election
– Special Election – SBE
Waiver
• Area of Election?
– Affected Area
– Unclear
– If opposed – expect Litigation
El Dorado County Office of Education
19
Revenue Limit Calculations
• When districts reorganize – a new
base revenue limit is calculated
using 2 step process:
– Step 1 – Blend existing
revenue limits using weighted
average calculation – No new
money
– Step 2 – Calculate add-on for
differences in average
salary/benefits costs – Only
new revenue
El Dorado County Office of Education
20
Other Issues with Add-On to Revenue Limit
• Not required to adopt higher salary
schedules/benefit offerings –
Subject to Negotiations
• Add-On Capped at 10% of Blended
Base Revenue Limit
• Calculations are Prorated based on
ADA for District Partially Included in
Reorganization
• District used to Determine Highest
Costs per FTE must constitute 25%
of total FTE of Reorganized District
El Dorado County Office of Education
21
Employee Issues
• Consolidation – All employees
become employees of new district
• If not total district affected by
reorganization – staff assigned to
new district based on whether site
is within the area reorganized –
district-wide staff may choose,
subject to reasonable
reassignment
El Dorado County Office of Education
22
Employee Issues (Cont.)
• Surplus employees – dismissed in
reverse order of seniority – with
May 15 notification and 39 month
reemployment rights
• Power to determine compensation
resides with governing board of
reorganized district, subject to PERB
decisions and negotiations. (Note
Unification exception for Classified
Staff)
El Dorado County Office of Education
23
Employee Contracts
• Right to Continued Employment
does not exist, except Unification
for Classified Staff
• Prior Contracts are not Enforceable
in a New District
El Dorado County Office of Education
24
Employee Contracts (Cont.)
• Representation of Employees
• Recruiting for New district – Duty of
New Board
• Development of Uniform
Salary/Benefit Schedule
• Contracts with Superintendents
Probably Nullified
El Dorado County Office of Education
25
Economies of Scale
• Difficult Decisions
• Greater staff specialization
• Analysis of Potential Reductions
– Administration
– Support Staff
– Closing School Sites
– Transportation
– Other Areas
El Dorado County Office of Education
26
Potential Positive Outcomes
• More sites – Greater flexibility,
more programs and capacity to
serve students
• More specialization of programs
• More specialized staff – more
opportunities for curriculum and
staff development
El Dorado County Office of Education
27
Potential Added Costs In Reorganizations
• Additional Administrative Staff –
larger student population = more
staff
• Transportation Issues
• Salary Schedules/Benefit Packages
in Excess of Add-On Revenue Limit
Funding
• Assumption of Debts
• Loss of some income, i.e.: Direct
Service, etc.
• Others
El Dorado County Office of Education
28
Preliminary Revenue Analysis and Findings
• School Services of California, Inc., computed 24 different
district combinations
– Small district combinations of less than 2,000 ADA
– Large district combinations of more than 8,000 ADA
– Geographic consolidations arranged by the two major local
highways – Highway 50 (east/west) and Highway 49
(north/south)
El Dorado County Office of Education
29
Preliminary Revenue Analysis and Findings
• Small district consolidations – six combinations
considered
– Largest funding increase: Gold Trail + Mother Lode (1,800
ADA; 9.74% increase yielding $1,068,926)
– Smallest funding increase: Pollock Pines + Camino (1,083
ADA; 2.59% increase yielding $171,127)
El Dorado County Office of Education
30
Small District Consolidations
Preliminary Revenue Analysis and Findings
• Large district consolidations – 11 combinations considered
– Largest funding increase: 5.79% yielding almost $4.8
million
– Smallest funding increase: 1.65% yielding almost
$850,000
El Dorado County Office of Education
32
Large District Consolidations
Preliminary Revenue Analysis and Findings
• Geographic consolidations – Seven combinations considered
– Largest funding increase: Mother Lode + Gold Oak +
Pioneer (2,218 ADA; 6.4% increase yielding just under
$870,000)
– Smallest funding increase: Rescue + Gold Trail (4,500
ADA; no increase)
• This combination produces no additional funding
because the district with the higher average salaries
– Gold Trail – cannot be the target district due to size
El Dorado County Office of Education
34
Geographic Consolidations
Preliminary Revenue Analysis and Findings
• Other findings
– 11 district combinations generate at least a 5% increase
– The largest increases are from small size consolidations
– Buckeye influences most of these combinations due to
its size and average salaries
El Dorado County Office of Education
36
Consolidations, Greater than 5% Increase
Community Considerations…
• Community Decision Making Points
– Greater Educational Opportunities for
Kids?
– Greater Economies of Scale?
– Greater Opportunity to Manage
Dwindling Resources?
– Opportunity to Capture Additional
Revenue
– Greater Opportunity to Focus on Areas
of Expertise?
– School vs. District identity
Complex Issue – No Easy Answers
Questions
Thank You!