CA Finance News Through June 26
Federal News
Secretary Duncan issued a statement on the role of charter schools in turnaround business.
The Office of Management and Budget (OMB) has released government-wide guidance for carrying out reporting requirements of Section 1512 of the ARRA, a list of programs subject to recipient reporting, and a recipient reporting data model. The Sunlight Foundation responded not including raw data at Recovery.gov, transparency is dramatically reduced .
This story identifies the trouble with recruiting teachers who have paid into Social Security in another career.
The Supreme Court was busy this week handing down ruling impacting schools:
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Schools Must Pay for Private Schools in a special education ruling
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School Violated Teen’s Rights in a ruling about an unlawful search
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High Court Eases Oversight Of English Program in ruling about providing English language classes
Sacramento News
It was no surprise that budget vote failed on Wednesday. Taxes or cuts, there’s simply less to spend. On Thursday, they got closer when the Assembly passed a set of bills, but the Senate defeated them. The State issuing IOUs looms next Thursday if a new budget is not signed into law.
The Bay Area Council’s work on a Constitutional Convention get plenty of press this week. First, Capitol Weekly reported that Prop 13 was off the table as part of the reform effort. Then Calbuzz clarified what the Bay Area Council’s intent. By the end of the week, it appears the Bay Area Council is attempting to offload the effort to get a constitutional convention convened.
The bailout plan for the King City Joint Union High School District cleared its first Assembly review Wednesday.
The Public Policy Institute of California issued a report that shows significant differences in Internet access and use along ethnic lines with just over half of Latinos (52 percent) having home computers, in contrast to 89 percent of Asian Americans, 87 percent of whites and 75 percent of African-Americans. And only 39 percent of Latinos have broadband Internet service, far lower than the percentages for other ethnic groups.
The California School Board Association issued an advisory for school boards considering the possibility of salary reductions, specific steps must be taken by July 1.
The Secretary of State has this interactive showing the county by county election results of Prop 1B which only passed in three counties.
In a First Amendment challenge to a public school district policy prohibiting political communication via school mailboxes, the denial of the writ of mandate sought by San Leandro Teachers Association was affirmed where the mailboxes were a nonpublic forum, and the regulation was content-neutral.
A milestone on California’s meandering journey toward fiscal insolvency occurred exactly a decade ago when the Legislature enacted a massive increase in state employee pensions on the expedient assumption that it would cost taxpayers nothing.
School District Headlines
Naming rights for sporting events and large community events could be a new source of revenue for county offices of education. School districts are turning to leasing of shuttered facilities.
Staying the Course
- The big hole in Oakland Unified’s budget
- New Haven Approves Budget and Gets Bad News about Voter Likelihood of Passing a Parcel Tax
- West Contra Costa Considers Second Parcel Tax within 12 months
- Sports saved at East Side Union High School District
- San Diego Schools budget OK’d, but cuts loom
- Oceanside school board OKs balanced budget
- Martinez council agrees to lend schools $500,000
Employee Negotiations
- Capistrano district seeks mediator to get teacher pay cuts Union leaders call the proposed 10 percent salary reduction “inflammatory and insulting.”
- Teachers at 2 school districts OK pay cuts
- Fresno USD offers teachers $25,000 to retire early
- ABC school district may OK furloughs, school year reduction
Implementing Cuts
- Antioch district eliminates six top jobs
- Kentfield board OKs schools budget, cuts positions
- Juruapa Budget Cuts including admin salary and employee furloughs
- Irvine schools weigh $7 million in last-minute cuts
- Ripon schools suspend some sports, activities
CA School Finance News Through June 19
Federal Stimulus Monies
While the White House was able to get Stimulus Bill through Congress, the initial bailout request for California has been spurned.
Sacramento News
By Wednesday, the state’s budget standoff seemed either to be approaching its final chapter, or on the verge of unraveling entirely, depending on your vantage point in the state Capitol. Current budget legislation contains provisions for reducing the school year 5 days and suspending the California High School Exit Exam. Superintendent O’Connell praised Governor for his stated intention to veto the suspension of the CAHSEE.
The big sticking point in the budget is TAXES. This week a blue-ribbon commission rewriting California’s tax code agreed on a policy framework. Of course the devil will be in the details.
California’s general fund budget is dependent on personal income taxes for about half of its support, which is why it and other states with high dependence are feeling the nation’s most severe budget pinches, a new study by the Nelson A. Rockefeller Government Institute reveals.
Pollsters characterized the May 19 vote against five budget measures as an order to a dysfunctional state government to fix California’s budget mess – and do so quickly and not necessarily a wholesale rejection of any new taxes.
Parcel taxes coverage continues as the Wall Street Journal writes about the passage of Piedmont’s $2000 per parcel tax.
Here is a handy document to help you understand how we got into the current fix and why Sacramento has become so dysfunctional when it comes to managing the state’s finances.
A number of California education organizations have filed suit accusing the state of violating federal laws and the state constitution by suspending the monitoring of specialized education programs for at least one year
The California Republican Party is running a pointed ad on YouTube in a low-budget answer to the Service Employee International Union’s $1 million television advertising blitz urging lawmakers to consider new taxes along with spending cuts
Technically, the state has an approved budget for 2009/10. Therefore, state finance officials say there’s a chance state government might have to do what it hasn’t done in 17 years: issue IOUs instead of paying its bills.
School District Headlines
Many school districts like San Diego are making cuts to balance the 2009/10 budget and waiting until next year to deal with 2010/11. Here maybe the reason why .
Staying the Course
- School board approves budget: Temecula district expects to spend $7 million more than it takes in
- Vista school trustees use federal money to save jobs
Employee Negotiations
- The Long Beach Board of Education, on a 3-to-1 vote, approved a resolution that district officials say was legally required to give board members the power next school year to cut employee compensation, which could include pay and benefits.
- Antioch district to alert administrators they may lose jobs
- Claremont teachers agree to no raise for coming school year
Implementing Cuts
- San Jose Unified approves raising class sizes in grades K-2 Interesting side effect is the “perceived fairness” as condition to implementing a shorter school year.
- Salinas high school district lays off 13 workers
- 230 Lodi Unified workers to lose jobs
- Natomas trustees slash $4 million from district budget
- Doors closed at three Chino Valley schools
Filling the Ongoing Revenue Hole
Most school boards are struggling mightily to approve a balanced budget of 2009/10. However, many of them are ignoring the out years because the cuts are too painful. What is the primary reason why school boards are confronted with these heart wrenching decisions? The ongoing monies to pay for salary increases approved in 2006 and 2007 are no longer there.
Below is a chart of the projected base limit revenue for Alameda Unified School. If you roll the clock back to June, 2007 you can see the trend line showing a declining trend of 1% less funding each year. Staff using the latest information from the State projected an even quicker decline of state funding increases. Staff recommended salary increases of 2% for 2007/08 and 4% for 2008/09 believing the projected funding increases would produce enough ongoing revenue to pay for the increased expenses.
Move the clock forward to June, 2009 and you can see the huge problem. Ongoing revenues for 2008/09 drops below 2007/08 levels and gets worse from 2009/10 through 2011/12. By 2011/12 there is $7 million hole between the 2007/08 projections and 2009/10 projections.
Many school districts are using categorical flexibility and Federal Stimulus monies to fill the hole for 2009/10. Unfortunately, when 2011/12 rolls around there will not be anymore one time monies available to fill the hole.
CA School Finance News Through June 12
Federal Stimulus Monies
U.S. Secretary of Education calls on State Officials and researchers to deliver honest answers about school reforms with monitoring and judgment by results that can be backed up by research proving their effectiveness.
Sacramento News
Total receipts for the state General Fund are $17 billion below (page3) last year with a one month to go.
Saying that borrowing money without a balanced budget in place “would be irresponsible,” Gov. Arnold Schwarzenegger revoked a financial mechanism that he agreed to last year for seeking emergency loans.
Assemblymember Noreen Evans, is blogging about the budget process and here is her recap of the conference hearing on K-12 Education.
Legislation is being considered that would impact “basic aid” school districts.
In news related to Prop 98 since it covers community colleges, the state Legislative Analyst’s Office (LAO) says in a new report that lawmakers could increase community college fees up to 3 times their current level without greatly affecting enrollment at the schools.
The typical process for budget negotiations is “The Big Five” meet behind closed doors and hammer out a budget. Then with little notice the Legislature is asked to approve the negotiated deal proposed by “The Big Five”. Senate Minority Leader Dennis Hollingsworth wants to change the process.
Labor unions are pressuring Democratic lawmakers to sign statements of support for up to $44 billion in new or higher taxes on the wealthy, oil companies, tobacco and other industries, products and people. SEIU is spending a million dollars to launch a statewide advertising blitz with a television commercial calling for new taxes to help balance the state budget. A consortium of 75 labor organizations, health advocacy associations and other groups sent a letter to legislative leaders demanding that tax breaks given to businesses in February be repealed before other programs are cut from the state budget.
So while the education budget is being slashed, the Governor wants to convert to digital textbooks.
While the main focus is on the State budget and its General Fund, don’t look now but the State’s Unemployment Insurance Fund is $6.9 billion in the hole at end of 2009 and could grow to $17.8 billion in the hole if no action is taken to change the way it’s financed. Oh by the way, the teacher’s pension fund is not looking great, and they testing the waters for a contribution rate increase next year.
School District Headlines
There are mixed signals on how school districts are responding to the May Revise. Education Week reports how California crisis slams K-12 hard.
Staying the Course
- Fresno Unified Weathers Budget Cuts
- OCEANSIDE: School board votes to rehire 37 teachers Stimulus money to pay for one-year contracts
Employees Negotiations
- Poway Service Workers Reject Salary Rollbacks
- West Contra Costa teachers threatening strike and Richmond teachers union protests district cuts
Implementing Cuts
- Capistrano trustees: Little hope of saving programs, jobs
- 200 Manteca teachers may be laid off Art and music, GATE programs also could be cut
- Music programs face cuts in Fruitvale school district in August
- Saddleback school board: Shortfall may swell $20 million District says more cuts coming, no targeted programs will be saved
CA School Finance News Through June 4
Federal Stimulus Monies
The news gets worse, as the Obama administration agrees with the Governor and will allow up to $6 billion in cuts to education without jeopardizing ARRA funds.
California Department of Education publishes distribution timeline of ARRA funds to LEAs.
As NCLB reauthorization talks take place, watch this emerging topic regarding national standards to replace state standards.
Sacramento News
Starting July 29, California won’t have enough cash to pay its bills according state Controller John Chiang’s letter.
On June 2, the Legislature heard pleas not to slash education. On June 3, the Governor delivers his speech declaring the State’s wallet is empty. To eliminate confusion, his staff publish a single spreadsheet of proposed reductions replacing the four previous versions. On June 4, a legislative budget committee voted unanimously Wednesday to eliminate state agencies including the Office of the Secretary of Education.
Education, once the top concern of California voters, is now down the list of priorities, far below the weak economy and narrowly behind public safety, according to a new statewide poll.
Do not look now, but the State Unemployment Insurance Fund is running up a huge deficit.
As city, county and school districts budgets get tighter, watch for tax payer groups to begin to question the pension systems and its benefits to public employees. For example, this report targets six figure pensions for school personnel.
School District Headlines
In a sign of potential things to come, the Santa Cruz school board defied their County Office of Education request to balance its budget beyond the current year.
Twin Rivers is rare district to add summer programs
San Diego school lunch prices, class size going up
Piedmont voters approve pair of tax measures
Pleasanton school parcel tax fails
Redwood City school parcel tax defeated
Lake Elsinore; Furloughs rescinded for school workers
Lodi Trutees order staff to get on with budget cuts
Community Engagement – Changing Dynamic
In these unprecedented times of fiscal crisis, school boards and Superintendents can not go it alone. Our ability to engage our citizens using new methods is now a requirement. The book Results That Matter provides this useful graphic:
In the decision making process we engage our communities in a number of different ways including school board meetings, our school district website and traditional media coverage. In many communities, social media is supplanting traditional media and as a result the type of engagement is changing. Citizens want real opportunities to make a difference, including opportunities to influence decisions and actions that affect the community. Ultimately, citizen engagement can go beyond deliberation and advocacy, to citizens’ collaborating in implementing change by volunteering their efforts or other resources to coproduce solutions
or services.
Social Media Impact
Social Media is a countless array of internet based tools and platforms that increase and enhance the sharing of information. This new form of media makes the transfer of text, photos, audio, video, and information in general increasingly fluid among internet users. When you combine the flow of information with the creation of social groups, the power of social media becomes very apparent. What once was an isolated discussion at a board meeting can turn into full blown community dialogue that can last for weeks or months. What does a school board need to consider when redefining its community engagement methods?
Here is a checklist of initial questions:
What is the current level of participation of the various stakeholders (students, parents, teachers, staff, community members, business people, etc) into decisons made by the Board? How would you like to see it change?
How easy is it for individuals to gain access to the materials being used for decisions being made by your Board? What alternative methods can be used to distribute these materials?
What alternative channels (Yahoo/Google groups, blogs, Listservs, etc) are being used to discuss school district decisions? How does the district utilize these channels to increase citizen engagement?
Leading Change in Our Districts
Last month, we discussed our role in overseeing student achievement using a Theory of Action. The last post in the series pointed out another responsibility which is Leading Change in our district. The book Leading in a Culture of Change by Michael Fullan is a book I highly recommend. Below is a high level summary of the book.
Certainly, the 150 pages of content is a lot of material to digest. Fundamentally, the book focuses on a framework for “leading change”. There are five components of leadership that represent independent but mutual reinforcing forces for positive change:
Moral purpose – acting with the intention of making a positive difference
Understanding change – is essential to survive without becoming a martyr
Relationship Building – fostering purposeful interaction and problem solving on the toughest questions
Knowledge Creation and Sharing – building the capacity of the organization to constantly generate and increase knowledge
Coherence Making – tolerating enough ambiguity while striving to identify meaningful patterns worth retaining
Acting on five components there are three more personal characteristics that all effective leaders possess: energy-enthusiasm-hope. Taken in all encompassing reinforcing system, you have an organization that moves forward as the forces of change swirl around. Here is a pictorial representation.
Creating Moral Purpose
Moral purpose is about both ends and means. In education, an important end is to make a difference in the lives of students. But the means of getting to that end are also crucial.
At its loftiest level, moral purpose is about how humans evolve over time, especially in relations to how they relate to each other. Examining the evolution of self-centered and cooperative behavior of individuals is translated into the “culture” of an organization. To be an effective leader should be driven by egoistic desires (self-centered) and altruistic (unselfish) motives.
Recognize that moral purpose does not stand alone. However, you can not be an effective leader without behaving in a morally purposeful way.
The Change Process
Understanding the change process is less about innovation and more about innovativeness. It is less about strategy and more about strategizing. It is about avoiding the common mistakes when change starts. And it is rocket science, not least because we are inundated complex, and often contradictory advice. For example:
Kotter’s Leading Change proposes eight steps :
Establishing a Sense of Urgency
Creating a Guiding Coalition
Developing a Vision and Strategy
Communicating the Change Vision
Empowering Broad-Based Action
Generating Short-Term Wins
Consolidating Gains and Producing More Change
Anchoring New Approaches in the Culture
Or Hamel’s advice to “lead the revolution “:
Build a point of view
Write a manifesto
Create a coalition
Pick your targets and pick your moments
Co-opt and neutralize
Find a translator
Win small, win early and win often
Isolate, infiltrate, integrate
Despite the contradictory advice and the valuable ideas contained in leadership books, change can be led and leadership does make a difference. The book then details its approach to understanding change in order to better lead it.
Understanding the Change Process
The goal is not to innovate the most.
It is not enough to have the best ideas.
Appreciate the implementation dip.
Redefine resistance.
Reculturing is the name of the game.
Never a checklist, always complexity.
Building Relationships
If moral purpose is job one, relationships are job two, as you can’t get anywhere without them. Moral purpose, relationships and organizational success are closely interrelated. In the case of schools, because we live in the knowledge society, need to strengthen their intellectual quality as they deepen their moral purpose.
After presenting educational examples, the author does acknowledge a word of caution. Relationships are are ends in themselves. Relationships are powerful, which means they can also be powerfully wrong. Strong teacher communities can be effective or not depending on whether the teachers collaborate to make breakthroughs in learning or whether they reinforce methods that, as it turns out, do not achieve results. The role of the leader is to ensure that the organization develop relationships that help produce desirable results.
Schools and school districts can get tough about student learning, can use their minds to identify new and better ideas, can establish strategies and mechanisms of development. But successful strategies always involve relationships, relationships, relationships.
Knowledge Creating and Sharing
Knowledge building, knowledge sharing, knowledge creation, knowledge management. Is this just another fad? They could easily become so unless we understand the role of knowledge in organizational performance and set up corresponding mechanisms and practices that make knowledge sharing a cultural value.
Information is machines. Knowledge is people. Information becomes knowledge only when it takes on a “social life”. Brown and Duguid establish a foundation for viewing knowledge as a social phenomenon:
“Knowledge lies less in its databases than its people.”
“For all information independence and extent, it is people, in their communities, organizations, and institutions, who ultimately decide what it all means and why it matters.”
“A viable system must embrace not just the technological system, but the social system – the people, organizations and institutions involved.”
“Knowledge is something we digest rather than merely hold. It entails the knower’s understanding and degree of commitment.”
If you remember one thing about information, it is that it only becomes valuable in a social context.
Focusing on information rather than use is why sending individuals or teams to external training by itself does not work. Placing changed individuals in an unchanged environment does not work. Change leaders work on changing the context, helping create new settings conducive to learning and sharing that knowledge. If individuals begin sharing ideas about issues they they see as important, the sharing itself creates a learning culture. Ideally, each individual makes an internal commitment to reach a level of mastery in tacit and explicit knowledge and understands they are responsible for sharing.
Coherence Making
Change is a leader’s friend, but it has a split personality: its nonlinear messiness gets us into trouble. But the experience of messiness is necessary in order to discover the hidden benefits – creative ideas and novel solutions often generated when the status quo is disrupted. While the world is complex, the key is to “disturb the status quo in a manner that approximates the desired outcome.
In schools, the main problem is not lack of innovations but the presence of too many disconnected, piecemeal, superficially adorned projects. Besides facing a turbulent, uncertain environment, schools face the additional burden of having a torrent of unwanted, uncoordinated policies and innovation raining down on them from hierarchical bureaucracies.
While “disturbing the status quo” appears to contradict coherence making, unsettling processes provided the best route to greater all-round coherence. The most powerful coherence is a function of having worked through the ambiguities and complexities of hard-to-solve problems because the only coherence that counts is not what is on paper nor what top management can articulate but what is in the minds and hearts of members of the organization. The leader’s coherence-making capacity is a matter of timing. There is a time to disturb and to time to cohere. Good leaders attack incoherence when it is a function of random innovativeness or prolonged confusion.
The book places a premium on understanding and insight rather than on mere action steps. In the long run, leadership effectiveness depends on developing internal commitment in which the ideas and intrinsic motivation of the vast majority of organizational members, become activated. Along the way, authorative ideas, democratic empowerment, affiliative bonds, and coaching will be needed.