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  • Tuesday, May 25, 2010

     

    OUSD BUDGET REPORT TO USE SCHWARZENEGGER BUDGET

    ORANGE Unified Schools INSIDE
    a news service of Orange Net News /O/N/N/
    Independent insight into OUSD

    OUSD BUDGET REPORT TO USE SCHWARZENEGGER BUDGET

    The Orange Unified School Board will hear a staff Budget Update (Agenda Item 13 B page 7) based on the latest figures provided in Governor Arnold Schwarzenegger’s May Revise Budget announcement for California’s $19 billion budget shortfall. In that announcement there were no significant modifications to the budget’s K-12 education funding from his earlier announced budget which actually included an increase to higher education. However, that budget includes eliminating the CalWORKs program, most state funded childcare and slashing funds for local mental health services and increasing co-pays in the Health Families program. Few in either political party believe that anything much in Schwarzenegger’s budget will actually survive the legislative process. Powerful interests outside of education have lined up against the budget and few believe that the proposed increases for higher education will stay or that K-12 will not take a bigger budget hit. The California Association of Counties has dubbed the governor's budget as "draconian" saying it "threatens to create a constant state of emergency in all 58 counties."

    Meanwhile state Democrats in the California Senate are countering Schwarzenegger's proposed budget cuts with a plan to raise taxes by nearly $5 billion. Democrats said they want to delay the start of corporate tax credits by two years. Their plan also would extend by two years temporary increases in the income tax and vehicle license fee that were approved last year. Democrats also propose raising the tax on alcohol but would allow a temporary 1 cent increase in the state sales tax to expire at the end of the year. Democrats in the California Assembly are proposing an oil drilling tax, delaying corporate tax credits and borrowing $10 billion from the Beverage California Redemption Value (CRV) Fund.

    What all this means to Orange Unified is that any budget using the Governor’s May Revise must later be changed when a budget is finalized. OUSD is however planning for the worst. It has reached a tentative agreement with the teacher’s union that among other cost saving items will cut five days off of next year’s school year. The May 27th Agenda will also include the support staff union California School Employees Association Initial Reopener Proposal for next year (Agenda Item 12 A page 4-5).

    Inside the May 27 Agenda

    •Agenda Item 4c 1 and 2- the hiring of three Principals: Orange H.S.; Cerro Villa M.S. and Yorba M.S.

    • Agenda Item 14 E- Resolution to issue Tax and Revenue Anticipation Notes These 36 pages of financial and legal speak will allow OUSD to borrow money while keeping tax revenues in the bank to earn money, or so it says.

    Legal Services
    The May 27th Board Agenda also includes the following legal services:

    • $30,000 Dannis, Woliver & Kelley (Agenda page 13): for general counsel and construction issues
    • $55,000 Parker & Covert (Agenda page 15): for modernization/ surplus property
    • $300,000 Parker & Covert (Agenda page 15): “for negotiations, general counsel and other issues relates to education” period through June 30, 2011

    INSIDE the OUSD Budget

    Total for Watched Tax Dollars approved in 2010:
    $ 385,000


    2010 Attorney Fee Tally:
    5/27/10 Dannis, Woliver & Kelley $ 30,000
    5/27/10 Parker & Covert $ 55,000
    5/27/10 Parker & Covert (to 6/11) $300,000
    TOTAL $ 385,000

    Total for Watched Tax Dollars approved in 2009: $1,041,000
    2009 Attorney Fee Tally:
    11/13/08 Parker & Covert (for 1/09 -6/09) $ 200,000
    3/12/09 Atkinson, Andelson, Loya (Sp. Ed) $ 50,000
    3/12/09 Parker & Covert (Special Ed) $ 98,000
    6/18/09 Parker & Covert (09-10) $ 400,000
    6/18/09 Parker & Covert (Special Ed) $ 200,000
    6/18/09 Parker & Covert (property) $ 55,000
    6/18/09 Atkinson, Andelson, Loya (property)$ 35,000
    Total $1,038,000

    2009 Consultant/ Speaker Fee Tally:
    01/24/09 Leadership Associates Consultants $ 3,000
    2009 TOTAL $1,041,000

    Total for Watched Tax Dollars approved in 2008: $901,200.00

    Total for Watched Tax Dollars approved in 2007: $704,090.00*

    Total for Watched Tax Dollars approved in 2006: $849,717.00*

    2006 Administrative Conference/Travel: Total $ 18,317 *
    * JUNE 8th, 2006 Trustees VOTE to Give OUSD Superintendent the power to
    APPROVE OUSD Travel Requests taking this item OUT of the PUBLIC AGENDA

    Total for Watched Tax Dollars approved in 2005: $978,300.00:

    Former Superintendent Godley’s Retirement Bonus running total (beginning 8/2008):
    $23,920.00*


    * The Godley Retirement Bonus presented here is an estimate of the amount in “bonus retirement” accrued since the Superintendent’s retirement on 6/30/08 using a 6% lifetime formula calculated here at $1210 a month since 8/08. The actual retirement plan the former OUSD Superintendent opted to take is not public information and the figures presented are only as an estimate of the taxpayer costs after the OUSD trustees voted against an amendment to exclude Godley from the retirement program. The on-going estimated figure is presented as a reminder to the community of the high cost in educational tax dollars the OUSD Board vote to allow the former Superintendent to participate in the 6% retirement incentive cost the OUSD education community in tax dollars. Godley retired from OUSD on June 30, 2008 after he worked for the school district for a little over five years.

    NEXT BOARD MEETING: THURSDAY May 27, 2010 OUSD BOARD ROOM
    For AGENDA-CLICK ON: AGENDA

    CLOSED SESSION- 6:00 pm
    OUSD Regular Session: 7:00 pm
    For more information call the OUSD Superintendent’s office at 714-628-4040
    For budgeting questions call Business Services at 714-628-4015

    ORANGE Unified Schools INSIDE
    Independent insight into OUSD
    is an independent news service of /O/N/N/
    Independent Local Insight”

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