Teachers Union Unveils Proposal to Bridge Budget Gap

By Erica Williams

Jan 13 -- School Supt. John Deasy and teachers' union president Harry Keiley say their recently released recommendations for bridging the district's million-dollar funding gap have many similarities. But there is one major exception -- the use of a mandated 3 percent reserve in case of emergency.

Deasy objects to dipping into the reserve, which, he argues, should be saved for a natural disaster, such as an earthquake. Keiley counters that the unprecedented budget crisis facing the district constitutes an emergency that requires using some of the money, which the union estimates totals $2.8 million.

"It is difficult to accept further reductions in programs and layoffs when there's money in the bank," said Keiley, who represents 750 district teachers who are members of the 330,000-member union statewide.

Keiley unveiled his recommendations to bridge an estimated $3.2 million in midyear cuts and an $11 million shortfall next school year at a School Board meeting attended Thursday by more than 100 union members.

Keiley urged the board to begin with reductions at the top and to make cuts "as far away from students as possible." Specifically, Keiley urged the board to consider such cost-cutting measures as:

• Reducing district staff by at least ten positions.
• Reducing special education costs by between 10 and 15 percent.
• Placing a moratorium on Special Service contracts.
• Freezing new expenditures.
• Offering early retirement to all eligible employees.

Keiley also urged the board to enhance revenues by placing a new parcel tax initiative on the ballot, lobbying the cities of Santa Monica and Malibu to increase their contributions to the district and reopening long-term lease agreements with Santa Monica College and the Doubletree Hotel for school district properties.

Keiley contends that "the leases, as written, are shortchanging the district," and suggested that the district even consider reclaiming the properties.

"I don't think we should allow the college or a major corporation to benefit from poorly written leases," he said.

Deasy said the district has already begun conversations with the lessors in an effort to renegotiate the agreements.

The board's reaction Thursday, Keiley said, was promising and he left the meeting with the sensethat the union's views would be heard and taken seriously. Deasy agreed, saying the union's recommendations were presented in a very collaborative way and that he looked forward to working together to resolve the crisis.

This week, several hundred CTA leaders and representatives from across the state will descend on Sacramento "to bring to light the reality of the governor's recommendations," Keiley said.

Both the Keiley and Deasy have denounced Gov. Gray Davis' proposed cuts in school programs and funding to bridge an historic $34.8 billion budget deficit.

"It seems Gov. Davis has forgotten that education was his number one, two and three priority when he was first elected," Keiley said.

If the teachers union president and the school superintendent concur that Sacramento must be held accountable, they continue to disagree over the use of the district's reserve.

At a Chamber of Commerce meeting last week, Deasy noted that using the reserve for other than its intended purpose would require the state legislature to enact new legislation lifting the current mandate. He said the legislators approved the reserve in the wake of the 1994 Northridge earthquake.

Keiley agreed that new legislation would be required to waive the state mandate. But, he added, schools currently are allowed to spend below the 3 percent mandate. However, he noted that the district must demonstrate to the county and the State how they would get back to the mandated reserve the following year.

At the Chamber's meeting Deasy denounced the governor's cuts aimed at K-12 funding. Keilly echoed the superintendent's sentiments last week.

"It is simply incomprehensible and unjustifiable that a state, which has the sixth largest economy in the world, fails to fund its schools at the national average," Keiley told the board before he unveiled his proposals for bridging the funding gap.