Strong Fiscal Oversight

By Sandra Crandall

For many years, local funds were the dominant source of district revenue. As the city of Fountain Valley was evolving from sparse agricultural homes to a city of many residences, the property tax base was growing, schools were being built and many children populated the schools.

With the city being 98.5% built out and families staying here for 35 or more years, Fountain Valley has the highest percentage of homes regulated under pre-Proposition 13 in Orange County. Even when homes sell and property values increase, it takes two to three years to capture the full benefit from the reassessed value, economic growth and housing inflation.

When the inequity issues between school districts were addressed in the 1970's, the State then became more than a minor partner in funding education. Education now has a rather privileged legal status in most state constitutions. Yet, there is a unique decentralized operation whereby 50 distinct state systems delegate to 13,000 local school districts. State revenues are derived from sales and income taxes which are linked to economic fluctuations. These revenues are more volatile than property tax revenue.

This multi-layered structure for funding schools then got another partner when approximately 8% of school revenues came from federal appropriations with the onset of the Elementary and Secondary Education Act (ESEA) in 1965. No Child Left Behind legislation is simply the 2001 version of ESEA.

A new funding formula has been enacted beginning July 1, 2014. It is called the Local Control Funding Formula (LCFF). It is a redistribution model of funding. Three sub groups of students, English Language Learners, low socio-economic students and foster youth will generate extra dollars. An aggregate and unduplicated 27% of our students will generate a supplemental grant amount of about $960,954. Through a series of meetings with parents and the community, priorities were set to allocate the extra funds to the needs of these three subgroups.

How all this money is managed in both times of economic upturn and economic downturn is important. Study and discussion needs to take place when planning for expensive capital projects.

Labor costs account for approximately 89% of our school district's budget. A planned strategy to move salaries to the mean was accomplished in the last ten years but stagnated in 2008 with a downturn in the economy.

$7.1 million in reductions were made which affected programs such as class size reduction, professional learning communities, music and reading clinic. Many positions were not filled when people retired and classified employees had their hours reduced. The effects of these cuts reduced librarians' hours, support staff hours and maintenance personnel hours. Furlough days were implemented resulting in two less instructional days for students and three less professional days for all employees. Furlough days have been restored, modest raises have been given and programs, such as music, are slowly being reinstated.

Employee insurance costs and increased employer obligations to employee pension plans (19.25% by 2021) are burdening the budget. Less money is available for classroom use.

Understanding and cooperation of all employees, parents and the community were gained as cuts were being made and ongoing inclusion of these groups is being made as restoration takes place. Ability to do so hinged on frequent, open informational meetings. All parties understand what is informing decisions and why these choices are being made.

All aspects of operating our schools must be considered when setting priorities for funding. Programs, personnel, leased properties, and current facilities must be viewed in terms of putting monies where it matters the most. Cost effectiveness must be weighed. All waste must be eliminated. Operating within the resources provided from the local, state and federal levels is essential.

Public schools enjoy strong support and Fountain Valley School District is no exception. Students are entitled to a free and appropriate public education. Upholding a fiduciary responsibility as a Board Member is imperative to ensuring the continued respect of the public and to carrying out the mission of public education.