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2006 Budget Recap for AUSD

November, 2005 Developments

Based on declining enrollment identified in September, staff projected an $800,000 revenue shortfall in the 2006/07 school year. Staff held school consolidation workshops at West End schools and made presentations to Board about various consolidation scenarios.

December, 2005 Developments

At the December Board meeting, staff made their final presentation on the potential scenarios for school consolidation.

January, 2006 Developments

At the January 10th BOE Meeting, the Board approved the Superintendent recommendation to consolidate Miller school into Woodstock school. This consolidation is expected to save the District approximately $300,000.

At the January 31st BOE Meeting, the Chief Financial Officer presented a report on the impact to AUSD of the Governor's proposed 2006/07 busget.

February, 2006 Developments

A list of potential budget reductions is published on the District website on February 2,2006. A community meeting is held that evening at Lum Elementary School with the following feedback.

At the February 28th BOE meeting, the Board approved $517,400 in additional budget reductions.

June, 2006 Developments

The Board approved the resolution for the 2006/07 budget.

The Powerpoint presentation from the meeting captures the high level details of the approved budget.

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August, 2006 Developments

At the August 8th meeting staff presented the impact of arbitration decision made in July, 2006. Part of the AEA contract negotiations include a clause to apply a formula to 2005/06 revenues. The arbitrator ruled that the 66% applied to the new $1,200,000 generated by Measure A. In addition, the arbitrator ruled on the treatment of substitute salaries. Since the decision is retroactive to July 1, 2005, the cost of this decision will be $4,200,000 in 2006/07 and $2,100,000 a year thereafter.

November, 2006 Developments

At the November 14 BOE meeting, the Alameda Education Association requested that the District stop blaming the budget deficit on the arbitration award from July.

At the November 28 BOE meeting, the Board the approved revisions to budget to avoid falling below the required 3% reserve for 2006/07 school year.

Additional Information

2003 State Budget Crisis

2004 State Budget Crisis

2005 State Budget Crisis

2006 State Budget Crisis

2003 AUSD Budget Issues

2004 AUSD Budget Issues

2005 AUSD Budget Issues

Teachers Say They’re Not to Blame for Budget Woes

By Ryan White, Alameda Sun, November 17, 2006

But the anger wasn’t theirs. A large number of Alameda Unified School District (AUSD) teachers turned out at the school board meeting, holding large red cards bearing the name of their respective school above their heads. They were there to protest what they say is the district’s unfair imputation that they are to blame for AUSD’s current budget crisis.

Alameda school board members were seeing red Tuesday night.

But the anger wasn’t theirs. A large number of Alameda Unified School District (AUSD) teachers turned out at the school board meeting, holding large red cards bearing the name of their respective school above their heads. They were there to protest what they say is the district’s unfair imputation that they are to blame for AUSD’s current budget crisis.

Several dozen teachers raised their red cards in unison as the teacher’s union president Earl Rivard delivered an impassioned address to the board in which he repeatedly objected to the idea that teachers were to blame for the budget shortfall.

“You have to stop taking it out on us,” Rivard said, suggesting the district was pinning blame for the deficit on teachers.

Rivard also criticized the district for failing to anticipate the then-pending arbitration settlement between the district and the Alameda Education Association, the teacher’s union, when they passed the budget last June.

The board approved a budget June 27 that avoided state sanctions by meeting the required 3 percent reserve level. The budget did not, however, fully anticipate the financial fallout from the then-ongoing arbitration between the teacher’s union and the district.

The arbitration decision, handed down to the district July 19, approved a 3.9 percent raise in teacher salaries, costing the district a total of $4.2 million and leaving a $1.4 shortfall in this year’s budget reserves.

“The result is that we’re no longer in a fiscally sound situation,” board member Mike McMahon said in an interview Wednesday.

Rivard, speaking on behalf of the teachers at the meeting, said the budget was never balanced because it didn’t take into account the money the district owes the teachers in deferred salary increases for the past two years.

“The balanced budget in June was a sham — smoke and mirrors, no balance,” Rivard said, as teachers in the audience nodded in agreement.

McMahon says that the district had in fact set aside more than $1 million in anticipation of the settlement, but that this wasn’t enough to cover the settlement costs in the end.

“The intent by both parties was to give (the teachers) their fair share while maintaining the fiscal solvency of the district,” McMahon said. “The devil is in the details of the implementation.”

McMahon points to declining student enrollment as the reason AUSD hasn’t been able to honor teacher’s contract demands while still fully funding school programs.

“The pie actually got smaller,” he said, since fewer students means less money from the state for AUSD. “The size of the pie was X when (the teacher’s union) negotiated the contract. The money got smaller because of declining enrollment.”

With fewer students, McMahon said, the district could not have agreed to the union’s salary demands over the past two years and still funded the budget without out making huge cuts.

At the Oct. 24 board meeting, AUSD Chief Financial Officer Luz Cázares presented the district’s options for closing the current $2.1 million deficit.

Much of the relief may come from $1.5 million in deferred reimbursements from the state — money the district is owed for implementing state mandated programs and requirements.

But the district will be forced to make more tough cuts in the months ahead. The board of education now has until February 2007 to figure out how they’ll reduce spending for the 2007-08 fiscal year.

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Last modified: January 31, 2006

Disclaimer: This website is the sole responsibility of Mike McMahon. It does not represent any official opinions, statement of facts or positions of the Alameda Unified School District. Its sole purpose is to disseminate information to interested individuals in the Alameda community.