More Layoffs as SBUSD Prepares Budget for 'Beyond Worst Case'

After hearing much tearful testimony, the South Bay Union School District (SBUSD) board of trustees voted unanimously April 7 to lay off 13 instructional assistants and approved a potential $5 million TRANS loan so that schools can maintain cash flow for the 2011-12 school year.

The instructional assistant (IA) positions to be eliminated are funded with "No Child Left Behind" Federal dollars, and the layoff recommendations are a direct result of a federal evaluation that found the SBUSD's IAs were not properly fulfilling their duties, but rather taking on duties that the teachers should perform.

Fighting back tears, Beth Gillen, who works as a health clerk in about a dozen SBUSD schools, said, “if you approve these site plans, you will eliminate 13 instructional assistants who together have 184 years of teaching experience and dedication to our teachers. They are a wealth of dedication and commitment to our district and our students."

Gillen explained to a group of 25 fellow school employees that perhaps many who filled out the federal evaluation forms did not understand them correctly, and that IAs perform duties as assigned by the teachers, which are not always necessarily performed in front of the teacher.

Years ago, when she was an IA, Gillen said she felt like she was often teaching the class, but the teacher always had the direction. "I think the issue we have is that we have limited resources. We believe that with proper training we can do an excellent job.”

Superintendent Carol Parish and Assistant Superintendent Shelley Burgess persuaded the board to approve the resolution. 

Board President Chris Brown and board member Melanie Ellsworth expressed their difficulty in voting for the resolution; however, both stated that they felt their hands were tied, and they could not risk the funds at a time when the district is facing huge budget deficits.

TRANS ‘Beyond Worst Case Scenario’

"The recommendation of the California School Boards Association is that we prepare our budgets not only for ‘worst case scenario,’ but that we will be wise to start preparing for the scenario referred to as ‘beyond worst case,' " Brown said. 

The TRANS resolution authorized the board to borrow $5 million for the 2011-12 fiscal year and issuance and sale of 2011 Tax and Revenue Anticipation Notes (TRANS)—a loan with a 2 percent interest rate ceiling.  

Assistant Superintendent in charge of finance, Scott Buxbuam, said that the state is deferring school loans, so the district is not receiving 20 percent of its state revenue. Additionally, funds that were expected to be dispersed in July have been deferred 50 percent until September, and the other 50 percent until January 2012.

“The cash we need to pay our bills, our vendors, our teachers, etc., is not coming to us. A $12 billion gap remains in the state budget for school districts and we are projecting a cash shortfall in March through June of 2012.

“About 20 of the 25 districts are in the same situation as us,” Buxbuam said, though she does not expect the SBUSD will need the TRANS loan. "I think most districts are OK for next year, but it’s 2012 where it could really fall apart."

Buxbuam said that because much of the school’s funding derives from property taxes, which the county has received less of since the foreclosure crisis, SBUSD schools are significantly impacted. 

“The property taxes due to us are our collateral,” Buxbuam said. “In the event the loan is due and we cannot pay it back, we would get another TRANS through the county. We’re not going in this alone, the schools have better credit than the state, but as some point, yes, it could be harder and harder to pay back the loan.”

Brown added a few words of encouragement, stating that the unions are very active in Sacramento, and they are in constant communication with legislators regarding the needs of San Diego County schools.

The SBUSD will reconvene again for its monthly meeting at 6 p.m. Tuesday, May 10.