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	<title>FCMAT &#8211; CalWatchdog.com</title>
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		<title>Sacramento teacher strike threat spurs criticism</title>
		<link>https://calwatchdog.com/2019/03/22/sacramento-teacher-strike-threat-spurs-criticism/</link>
					<comments>https://calwatchdog.com/2019/03/22/sacramento-teacher-strike-threat-spurs-criticism/#comments</comments>
		
		<dc:creator><![CDATA[Chris Reed]]></dc:creator>
		<pubDate>Fri, 22 Mar 2019 18:35:15 +0000</pubDate>
				<category><![CDATA[Breaking News]]></category>
		<category><![CDATA[darrell Steinberg]]></category>
		<category><![CDATA[pension bailout]]></category>
		<category><![CDATA[pay raise]]></category>
		<category><![CDATA[FCMAT]]></category>
		<category><![CDATA[Sacramento teachers strike]]></category>
		<category><![CDATA[los angeles teachers strike]]></category>
		<category><![CDATA[oakland teachers strike]]></category>
		<category><![CDATA[declining enrollment]]></category>
		<category><![CDATA[Jorge Aguilar]]></category>
		<guid isPermaLink="false">https://calwatchdog.com/?p=97437</guid>

					<description><![CDATA[Teachers in the Sacramento City Unified School District have authorized a strike, hoping to follow in the footsteps of teachers in Los Angeles Unified and Oakland Unified and secure substantial]]></description>
										<content:encoded><![CDATA[<p>Teachers in the Sacramento City Unified School District have <a href="http://laschoolreport.com/antonucci-unions-ramp-up-strike-preparations-in-santa-rosa-and-sacramento/" target="_blank" rel="noopener">authorized</a> a strike, hoping to follow in the footsteps of teachers in Los Angeles Unified and Oakland Unified and secure substantial raises after a brief walkout.</p>
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<figure class="alignright is-resized"><img decoding="async" src="https://calwatchdog.com/wp-content/uploads/2019/03/IMG_2672-e1553142543207.jpg" alt="" class="wp-image-97440" width="199" height="199"/></figure>
</div>
<p>But in key ways, the dynamics appear different. In <a href="https://calwatchdog.com/2019/01/10/strike-or-no-strike-l-a-unified-in-desperate-financial-shape/">Los Angeles</a> and <a href="https://calwatchdog.com/tag/oakland-teacher-strike/">Oakland</a>, the public and the local media were clearly sympathetic. Teachers had not had significant raises in years, and with the cost of housing going up arguably have lost purchasing power in recent years.</p>
<p>In Sacramento, however, the argument that the local school district simply can’t afford raises because of the huge long-term increase in pension costs and loss in state funding because of declining enrollment has resonated far more than similar warnings did in Los Angeles and Oakland. Coverage in regular and social media has repeatedly emphasized three points:</p>
<ul>
<li>The Sacramento City Teachers Association secured an 11 percent raise for most members in September 2017 after threatening a strike. The Sacramento County Office of Education warned at the time that without significant cuts, the district faced fiscal disaster. But the local teachers union has rejected calls to reduce the cost of health benefits that the state Fiscal Crisis &amp; Management Assistance Team (FCMAT) says are the most generous in the Sacramento region.</li>
</ul>
<ul>
<li>The warning from school officials that even without having to provide new raises, the district faces a <a href="https://www.sacbee.com/news/local/education/article226279165.html" target="_blank" rel="noopener">$35 million</a> hole in a nearly $400 million annual budget and is on track to run out of money in November. At that point, under state law, the district could seek an emergency loan from the state Legislature, but on the condition that it accept an appointed administrator to make key financial decisions going forward, taking away most of the school board’s and Superintendent Jorge Aguilar’s powers. The primary goal of those decisions would be ensuring the district pays back the state loan.</li>
</ul>
<ul>
<li>The fact that the four other employee unions in Sacramento City Unified have sided with Aguilar’s warning that a raise could seal state control of the school district for a decade or more, as has happened in other California districts that have been unable to pay their bills. They don’t buy the teachers union claim that the district has failed to honor the contract it signed in 2017, thus making a strike necessary even though state law says such a strike would be illegal since the teachers are still under contract.</li>
</ul>
<p>Writing Monday, Sacramento Bee columnist Marcos Breton <a href="https://www.sacbee.com/news/local/article228022409.html" target="_blank" rel="noopener">warned</a> the teachers union that it risked disaster not just for the district and its 42,000 students but for a city that has built up civic momentum in recent years under Mayor Darrell Steinberg.</p>
<p>“Sacramento&#8217;s efforts to sell itself as a place for companies to invest would be damaged because a major selling point is good schools,” Breton wrote. “How many investment opportunities would be lost if Sacramento became known as the city whose schools were bankrupt?”</p>
<p>Aguilar arrived in 2017 at the district and is given good marks in most circles for his determination to avoid financial disaster. But a FCMAT <a href="https://www.scusd.edu/sites/main/files/file-attachments/sacramento_city_usd_fhra_final_12-12-2018_002.pdf" target="_blank" rel="noopener">audit</a> released in December pointed out a vast array of problems in Sacramento City’s management that dated back many years. It cited incompetence and poor communications by the district’s business team and a failure to properly analyze budget data that indicated the headaches to come.</p>
<p>Union leaders say these management failings are not their responsibility and should not be held against their push for better pay.</p>
<p>The union’s hope that a strike authorization vote would lead to new concessions hasn’t happened so far. A union statement said the strike was coming “at a date likely in the next month.”</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">97437</post-id>	</item>
		<item>
		<title>Despite budget crisis, Oakland Unified may give teachers 12% raise</title>
		<link>https://calwatchdog.com/2019/02/15/despite-budget-crisis-oakland-unified-may-give-teachers-12-raise/</link>
					<comments>https://calwatchdog.com/2019/02/15/despite-budget-crisis-oakland-unified-may-give-teachers-12-raise/#comments</comments>
		
		<dc:creator><![CDATA[Chris Reed]]></dc:creator>
		<pubDate>Fri, 15 Feb 2019 23:46:01 +0000</pubDate>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[emergency state loan]]></category>
		<category><![CDATA[CalSTRS bailout]]></category>
		<category><![CDATA[oakland unified]]></category>
		<category><![CDATA[oakland unified enrollment]]></category>
		<category><![CDATA[Kyla Johson-trammell]]></category>
		<category><![CDATA[Oakland teacher raises]]></category>
		<category><![CDATA[FCMAT]]></category>
		<category><![CDATA[Oakland teacher strike]]></category>
		<category><![CDATA[state loan to Oakland Unified]]></category>
		<guid isPermaLink="false">https://calwatchdog.com/?p=97256</guid>

					<description><![CDATA[With 95 percent of Oakland Unified teachers already having approved a strike that appears likely to begin Tuesday, the school district could face weeks of turmoil – unless, like Los Angeles]]></description>
										<content:encoded><![CDATA[<p><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-71018" src="https://calwatchdog.com/wp-content/uploads/2014/12/Oakland-skyline-wikimedia-e1520802974382.jpg" alt="" width="500" height="333" align="right" hspace="20" /><span style="font-weight: 400;">With 95 percent of Oakland Unified teachers already having approved a strike that appears likely to begin Tuesday, the school district could face weeks of turmoil – unless, like Los Angeles Unified leaders </span><a href="https://www.nbcnews.com/news/us-news/los-angeles-teachers-strike-ends-tentative-deal-reached-school-district-n961311" target="_blank" rel="noopener"><span style="font-weight: 400;">did last month</span></a><span style="font-weight: 400;">, Oakland Unified agrees to give substantial raises to teachers. But there are outside experts that think the district can’t afford to provide the raises.</span></p>
<p><span style="font-weight: 400;">The teachers union – the Oakland Education Association – wants a 12 percent increase phased in over three years. The district has offered a 5 percent raise over three years. The union and district have been unable to agree on a contract since the last one expired in 2017.</span></p>
<p><span style="font-weight: 400;">That’s at least partly because Oakland Unified is in a financial bind that is worse than many other districts. It has the same problem as other districts in dealing with the increasingly heavy annual cost of the Legislature’s 2014 bailout of the California State Teachers’ Retirement System. The bailout – phased in from 2014 to 2021 – requires school districts to increase by more than 130 percent their annual contributions to CalSTRS.</span></p>
<p><span style="font-weight: 400;">But Oakland Unified also has seen among the sharpest enrollment drops of any state school district, falling from 54,000 to 37,000 since 2003. Because state funds depend on average daily attendance, this has wiped out many non-mandatory programs.</span></p>
<h3>Schools kept open despite huge drop in enrollment</h3>
<p><span style="font-weight: 400;">Yet Superintendent Kyla Johnson-Trammell and other district officials have been leery of closing schools because of parents’ concerns, leaving nearly 11,000 empty seats in often half-full schools. They’ve also failed to significantly reduce administration and support staff even as enrollment has dropped by more than 30 percent.</span></p>
<p><span style="font-weight: 400;">That may change soon. According to a Bay Area News Group </span><a href="https://www.eastbaytimes.com/2019/01/17/oakland-unified-looks-to-cut-up-to-30-million-from-2019-20-budget/" target="_blank" rel="noopener"><span style="font-weight: 400;">report</span></a><span style="font-weight: 400;">, to free up money for raises for the district’s 3,000 teachers, the Oakland school board is prepared to lay off 90 administrators and nearly 60 school support workers to generate annual savings of $21.75 million. Oakland Unified officials say that this will not only pave the way for labor peace, it will help reduce the district’s structural deficit, which is otherwise on track to top $56 million by the 2020-21 school year. They have also vowed to follow through on staff recommendations that 24 schools be closed.</span></p>
<p><span style="font-weight: 400;">But a 2017 </span><a href="http://fcmat.org/wp-content/uploads/sites/4/2017/08/Oakland-USD-final-report.pdf" target="_blank" rel="noopener"><span style="font-weight: 400;">analysis</span></a><span style="font-weight: 400;"> by a state agency that helps school districts in financial distress raises a question that most local coverage of Oakland Unified doesn’t address: Can district staff be trusted to competently manage its</span><a href="https://www.ousd.org/Page/16243" target="_blank" rel="noopener"><span style="font-weight: 400;"> $500 million-plus budget?</span></a></p>
<p><span style="font-weight: 400;">After looking at district budget information dating back to 2010, the Fiscal Crisis &amp; Management Assistance Team (FCMAT) depicted the district as on track to a “fiscal emergency” because of its slowness to acknowledge, much less respond to, obvious problems. It noted that the school board had approved pay raises – including boosts of about 15 percent for teachers from June 2014 to January 2017 – without first identifying how they would be funded. FCMAT also cited “constant turnover” in key positions; a lack of district supervision of how schools deal with spending decisions; and an “abundance of budget exceptions granted to sites and departments that overspend.”</span></p>
<h3>District hoping for emergency state loan</h3>
<p><span style="font-weight: 400;">In the short term, the district has taken steps to secure an emergency state loan of $34.7 million. But as the EdSource website </span><a href="https://edsource.org/2018/oakland-risks-state-takeover-if-it-fails-to-make-budget-cuts-state-and-county-officials-warn/604183" target="_blank" rel="noopener"><span style="font-weight: 400;">reported</span></a><span style="font-weight: 400;"> in September, the district still hasn’t fully paid off the $100 million emergency state loan it got in 2003.</span></p>
<p><span style="font-weight: 400;">State officials may feel that for political reasons, they have no choice but to help Oakland Unified again. But as FCMAT and others have noted, the district’s enrollment is expected to keep plunging – even as pension obligations keep growing. A 12 percent raise for teachers would only make achieving fiscal stability even more daunting for district leaders.</span></p>
<p>L.A. Unified school board members heard similar warnings last month, but chose to provide a<a href="https://www.cnbc.com/2019/01/22/tentative-deal-reached-to-end-los-angeles-teachers-strike.html" target="_blank" rel="noopener"> 6 percent raise</a> to teachers <span style="font-weight: 400;">–</span> just shy of the 6.5 percent the teachers union had wanted.</p>
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