Guest Opinion: We must work as a team to weather our schools' financial crisis Guest Opinion: We must work as a team to weather our schools' financial crisis (February 18, 2004)

by Cathy Kroymann

Our schools are the jewels in the crown of our community. They are why most families move to Palo Alto and property values remain high.

Our talented, hard-working teachers and staff are the key to our district's quality. I was a nearly full-time volunteer when my children were students and have continued my involvement by serving on the school board since 1997.

As this year's board president, I am dedicated to supporting our staff and students and providing the highest quality education program possible within increasingly limited financial resources. During difficult times it is especially important to provide accurate information to our community.

Palo Alto over the years has generously supported its schools. In 1995, when funds were needed to renovate buildings to support quality education, the community came through with an 82 percent yes vote on a bond measure. In 2001, there was a 75 percent yes vote on a parcel tax to augment teacher salaries and programs.

I worked on the bond campaign and led the volunteer effort for the parcel-tax campaign.

In the late 1990s the district enjoyed strong property-tax growth, its major source of revenue. The district channeled much of that to teachers and staff. For the five years ending last June 30, the San Francisco Urban Consumer Price Index (the inflation measure used most often in the Bay Area for planning and comparison purposes) rose by 18.6 percent while salaries for district employees were increased by 36.4 percent. The district also increased benefits and continued individual raises based on years of service and continuing-education credits. It also added to the education program -- but the bulk of resources went to salaries and benefits. I am proud of this record.

A first-year teacher now makes $44,268 minimum; a 10-year teacher makes $65,010 minimum (with the exception of one who is working under a special credential); and the most senior teachers make $90,000 to $96,000.

The district compares teacher salaries with other districts annually to ensure it is fair, competitive and able to attract and retain a quality staff.

But we now confront a situation in which district revenues have been hit hard by the downturn in local and state economies and by increased costs of benefits. In the past 18 months, we have cut $4.1 million from the budget and have used $3 million from district reserve funds.

Thanks to the extraordinary work of the administrative team, through reorganization, reassignments and attrition we were able to accomplish the budget reductions with the loss of just two people. While losing even one person is devastating to me, the magnitude of these reductions means it's just not possible to retain every employee.

That is why I asked to discuss the possibility of one or two furlough days. It was never meant as a sign of disrespect, but rather as a way to preserve a job for every person.

We began 2003-04 with expected property-tax growth of 3.66 percent for this year and 2.5 percent for 2004-05. We received information last week that this year's projected growth has plummeted to .16 percent -- and to zero next year.

This terrible news raises next year's projected deficit to $4.1 million. And we still face uncertainties such as the outcome of the March 2 election for the state's economic recovery bond (Prop. 57), possible further declines in property-tax revenues, increased cost of benefits and the long-term threat to our basic-aid tax dollars.

Both last year and this year, we used reserve funds to avoid making mid-year reductions. We began 2003 with $13.2 million in reserves and we will be down to approximately $10.9 million at the end of this school year. We must cut even more deeply or develop ongoing sources of revenue for next year to balance our budget.

Parents have pledged to raise $1.5 million to ease the deficit. We will advance reserve funds to allow them time to accomplish their goal. At the Feb. 10 board meeting, Superintendent Mary Frances Callan outlined a plan for an additional $1.5 million in reductions. Again, through reassignments and attrition, nearly every person would be placed in a job next year.

Now, with last Wednesday's jolting news of lowered property-tax revenue and higher state retirement-fund costs, we need to identify an additional $1.1 million in reductions for 2004-05.

We will again use reserve funds to cover the deficit this year. But to protect the district's fiscal integrity for future generations of students, we must balance our budget for 2004-05.

I invite students, staff, parents and other community members to participate in a series of meetings to discuss what they value most in our schools -- and explore possible additional reductions.

The superintendent will meet with the staffs and parent leaders of schools throughout the district. In addition, she and I will host two community-wide meetings: Thursday, Feb. 19, to discuss secondary schools and Wednesday, Feb. 23, to discuss elementary schools -- both at 7 p.m. at JLS Middle School. Please participate and be part of the solution.

The district Web site, www.pausd.palo-alto.ca.us, will post up-to-date information, with a Q&A. Anyone with additional questions or suggestions may contact me or other members of the board. We need to address this difficult financial time as a team to find the most creative, constructive and responsible solutions.

Cathy Kroymann is president of the Palo Alto Unified School District board. She can be e-mailed at cathy@kroymann.com.

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