Some say the recently approved teachers’ raise could negatively affect the budget.
By Jonathan Friedman / Assistant Editor
In a mid-year review of its 2006-07 budget, the Santa Monica-Malibu Unified School District determined its budget is currently in smooth shape financially. But the head of the district’s Financial Oversight committee warned at last Thursday’s Board of Education meeting that the situation could change once the board approves the 5 percent proposed raise for district teachers and the budgeting process begins for next fiscal year.
At last week’s meeting, the board reviewed what is called the First Interim Report, a document that updates the financial situation of the district for the current fiscal year, including the projected revenue and expenditures. According to the report, the district is receiving $112.3 million this year from its various sources, mainly the state. With a beginning balance of $11.7 million, that brings the district’s fund total to $124.1 million. The district projects $118.3 million in expenditures.
However, not included in the report’s numbers is the proposed 5 percent teacher salary raise that was negotiated between the teachers union and the district. The raise is expected to be approved by the board next month, and is retroactive. There has been some concern that the raise, part of a three-year contract, could affect the district financially in the future. School districts must take future budgets into consideration, as state law requires them to project for three years when approving a budget.
“While the news is quite good for this moment in time, as we look forward to budgeting for the next fiscal year, the story is about to change,” said Paul Silvern, head of the district’s Financial Oversight Committee. “There are very significant challenges that will need to be addressed while crafting the budget for next year.”
Board members have said in recent weeks that they believe the district can afford the raise, and it must look at the budget to find where that money will come from. One of the suggestions has been to review how the district designates its costs for various items, because sometimes it overestimates and money is left unused.
Teachers union President Harry Keiley said at last week’s meeting that money can be found within the fund designated for “services/other operating costs.”
“That’s where some dollars are that may not have as much of an impact on people’s lives, including the children of the district,” Keiley said.
The teachers’ raise was a source of disagreement between SMMUSD Superintendent Dianne Talarico and the district’s chief financial officer, Winston Braham. While Talarico supported the raise, Braham refused to endorse it. Shortly after that, he resigned. His resignation letter, which was made public this week, mentions nothing about his disagreement with Talarico.
The district has hired Anthony Bridges from the private Fiscal Crisis Management Assessment Team to review its financial status. Bridges will reveal his findings at a meeting next month. At that time, the district will vote on the proposed agreement with the teachers union. The board will also discuss and possibly vote on a plan that will be sent to the Los Angeles County Office of Education, or LACOE, on how to keep the district’s reserve fund above the minimum amount. LACOE officials had expressed concern about the proposed raise in a letter that was sent to the district last month.
Also at the meeting, the board selected Malibu resident Kathy Wisnicki to serve as board president for a one-year term. Wisnicki, the lone Malibu resident on the board, was elected in 2004. She spent the last year as vice president. Taking her place in that position will be Oscar de la Torre. De la Torre, the head of the Pico Youth and Family Center, a Santa Monica-based youth center that promotes peace, was re-elected to a second term on the board last month.