Pleasanton Parcel Tax - Measure E

The Armageddon That Wasn't

2011-06-13T21:10:00.000-07:00

The Sky Was Falling

Pleasanton Teachers Union president Trevor Knaggs boldly predicted “If Measure E fails, our schools will be facing Armageddon.”

The California Teachers Association declared a “State of Emergency”, held a week of protests, disrupted state legislature meetings, and got arrested (including CTA President Sanchez at 2:12 in this video).

Superintendent Ahmadi trumpeted around Pleasanton to Realtors, business leaders and school parent groups that PUSD had a $7.7M budget shortfall and championed a new school property parcel tax. She authorized the expenditure of a district-wide four page glossy mailer claiming schools are “protecting our property values.”

School board trustees and community members predicted significant property value declines if parcel taxes are not passed. Former mayor Ken Mercer in 2009 predicted property values would fall if Measure G did not pass. Mr. Mercer repeated the same claim in 2011 with Measure E.

One month after Measure E failed, PUSD is flush with cash and is spending it

The PUSD second interim budget report shows a $4M net for this school year.

In the latest 6/3/11 budget update at the school board meeting (which PUSD has yet to post online), the fiscal situation looks $3.2M to $6.9M better than it did just two months ago. Luz Cazares, assistant superintendent of business services said that if the CA tax *increases* are not implemented, California would likely re-implement an already anticipated deferment of funding, with little to no impact to PUSD. This echoes the advice written here, from School Services, Inc. and from the CA LAO.

Earlier this year, PUSD quietly increased teacher salaries and benefits by $1.8M by not continuing furlough days in the upcoming school year.

On 6/3/11, PUSD restored $2.45M in funding for K-3 CSR, elementary PE and reading specialists, middle and high school counselors, and a few extra sections for the comprehensive high schools.

Armageddon talk and fake layoffs destroys trust

Like the May 21, 2011 Armageddon-that-wasn’t event that raised millions for Harold Camping, the PUSD Armageddon-that-wasn’t along with the CA state budget theatrics was messaged/timed to condition voters to extend the temporary state tax increases and to heighten Pleasanton voter angst to impose a new parcel tax.

Why should voters trust either PUSD or its union leaders to give an honest accounting (or prediction) of the district’s fiscal health? And should we trust those who claim that failed parcel taxes will destroy housing prices?

Lack of Trust in PUSD is a key component of why all three attempts at a school parcel tax failed.

When PUSD and union leaders change their practices and behavior to be fully transparent and utilize all local fiscal controls before crying ‘wolf’, they will see an educated voter population supporting their new-found fiscal maturity.

Measure E - Do the Math, Part Two

2011-03-17T15:41:00.000-07:00

One argument Measure E supporters make is that a $98 annual parcel tax is equivalent to 27 cents a day. Then by some form of logic, if you are against this tax, you are a cold-hearted rigid tea party ideologue (or worse).

Some opponents of Measure E say 'it is not about the money, in fact, the tax should be larger.' Leading to some very interesting conversations.

Well, it is about the money. Lots of money. PUSD's 2010-11 total revenue is $142 million dollars or $389,000 a day.

Where does PUSD get $142 million dollars?

From YOU. From your federal taxes, state income taxes, local property taxes, sales taxes, fees, and anything that puts your money in the federal and state government coffers.

Let's do the math.

With 52,000 residents in Pleasanton over the age of 18, the average adult is paying $2,700 a year to fund the local school. The average married couple pays $5,400. If you have a house, two kids and cars, you likely pay far more than the average. And you've been paying an additional $1,400 more per year to the state via the 2009 temporary taxes, and the reduced dependent exemption.

So when your favorite teacher, union boss, or school parcel tax advocate says to you that you are a cheap, miserly, penny pinching weasel who doesn’t support the kids, remind them that you already support the kids and fund the entire school budget of $142 million dollars.

Measure E - Do the Math, Part One

2011-03-01T10:07:00.000-08:00

Measure E supporters have a history of claiming the parcel tax will protect property values. Let's look closer at the numbers and 'Do the Math'.

The 'Protect Property Values' claims.

The second line of the Pleasanton Unified School District (PUSD) resolution says "Whereas, property values within the District are related to the quality of education available in the District's public schools." PUSD also claims in the first section of their four-page color glossy mailer, excellent schools are "creating a demand for homes and protecting our property values". In an almost verbatim claim in the first paragraph on their website, Support Pleasanton Schools (SPS) says good schools are "creating demand for our homes and protecting property values."

Pleasanton has $16 Billion in residential property market value.

The Alameda County Assessor reports Pleasanton has a local assessment roll of $17,326,290,380.
That's $17 BILLION. If you remove the business property component (25% average in Alameda County), and account for residential market value vs assessed value (add 25%), you would reach a residential property market value of $16.24 Billion.

What will a $2 million parcel tax provide?

If we assume the entire $2 million is spent on NEW teachers, it could fund twenty-five teachers at an average $80,000 cost.
That's 1.7 teachers per school by placing those 25 teachers in the 15 schools.
Or one teacher per 600 students throughout the district.
Therefore, each student in Pleasanton will receive approximately 2 more hours of teacher attention per year.
Or about 36 seconds a day.

If the $2 million is used to fund employee step salary increases and higher longevity bonuses, then our children will have no benefit from this parcel tax.

Can anyone honestly say that $2 million will protect $16 billion in property value?

Measure E on the May 3, 2011 Vote-by-Mail Election

2011-02-28T12:05:00.000-08:00

The Alameda County Registrar of Voters website contains the PUSD resolution, the County Counsel's Impartial Analysis, the arguments for and against, and the rebuttals.

A formal (FPPC # 1335504) committee has formed to raise campaign funds and promote Measure E. Save Pleasanton Schools plans to raise over $100,000 and conduct phone banking, yard sign distribution.

An informal group is against Measure E, and like their successful effort to derail the 2009 Measure G, they will rely completely on grass-roots and no-cost methods of educating voters about why Measure E is the wrong tax at the wrong time.

This is a Vote by Mail Election only. There are no Polling Places.

Vote by Mail Ballots will be mailed out starting on Monday, April 4, 2011.

Important dates:

First day to mail sample ballots - Thursday, March 24, 2011
Early Voting will begin on Monday, April 4, 2011
Close of Voter Registration Period - Monday, April 18, 2011
Last day to request a Vote By Mail Ballot - Tuesday, April 26, 2011

Election information was obtained from the Alameda County Registrar of Voters website.

Teacher Pay: How does PUSD compare statewide?

2011-02-17T13:57:00.000-08:00

The Sacramento Bee published a searchable database comparing teacher salaries across California school districts. The first table shows Pleasanton has the 19th highest paying school district in the state. And ranks 3rd among all large districts. Among those highest paying school districts, Pleasanton has the lowest average years teaching.

It should be noted that many years ago, PUSD and the teachers union negotiated that teachers salaries would be dramatically increased in return for eliminating a medical benefit plan. PUSD estimates approximately 70% of Pleasanton teachers receive medical benefits through a spouse's plan. Not only are a majority of teachers receiving income for a benefit they derive elsewhere, their CalSTRS pensions are significantly higher as they are calculated based on the salary.

Bay Area News Group has submitted a request to the District to obtain employee compensation data.

PUSD scattergram of teacher salaries dated January 2010 shows 124 FTE earning the maximum salary of $98,045.

Other PUSD financial data is here.

CA School Districts Demonstrating Cost Control

2011-02-02T13:04:00.000-08:00

School Districts across California are utilizing a wide variety of options to control costs. Several are using across the board salary reductions in addition to furlough days to protect student programs and services. Administration, certified and classified employee groups have all demonstrated effective use of these options.

Some agreements use restorative language to give back furlough days and restore pay when revenue returns to a predetermined level.

Here are some examples:

Lodi Unified School District classified employees will have an across-the-board 2-percent salary reduction beginning Jan. 1, 2011, which saves the district about $645,000 per year. This is in addition to furlough days.

Capistrano Unified School District teachers have a 3.7% salary reduction along with furlough days and benefit cost reductions. The contract had 'reinstatement' terms that restored these when revenues returned.

Hesperia Unified School District teachers agreement includes a 1-2% pay reduction with restoration language, step increases deferred (column increases remain) and 9 furlough days yielding a total cost reduction of at least 5.86%.

Elk Grove Unified School District teachers agreement includes furlough days, suspension of an annual bonus, increasing doctor's office co-pays, and "a pay cut of 1 percent to 2 percent, depending on salary."

Rocklin Unified School District administrators have a 2% pay reduction and four furlough days.

Hemet Unified School District classified employees agreed to a 4.95% salary reduction and five furlough days for a total reduction of 6.5%.

Oceanside Unified School District administrators took a 5% salary reduction to save $700,000.

Lake Elsinore Unified School District teachers will have six furlough days for the 2011-2012 school year. These furlough days will be rescinded if new revenue becomes available.

Parcel Taxes Stay and Grow - local examples

2011-01-21T10:32:00.000-08:00

School District parcel taxes follow a pattern where once approved, never go away. The revenue becomes locked into the spending structure, usually for salaries and benefits which comprise over 80% of school district budgets. To remove the parcel tax would cause the same outcry as state reductions in revenues. When state revenue is reduced as in the last few years, districts must act to add more parcel tax revenues (instead of controlling expenses). Here are several local examples.

Alameda Unified School District (AUSD)

AUSD placed Measure A on a March 8, 2011 ballot. This seven year parcel tax is designed to raise $12 million per year. It will replace two existing parcel taxes that raise a currently combined $7.3 million per year and expire in 2012. This is a 64% increase in taxes.

The two existing parcel taxes were approved in 2005 for $3.0 million and 2008 for $4.3 million. These taxes provide 11% of AUSD revenue, and would climb to 18% with the new parcel tax. This in spite of a 7% decline in student enrollment since 2008.

Lafayette School District (LAFSD)

LAFSD placed a four year $176 parcel tax on a vote-by-mail May 3, 2011 ballot. This parcel tax is in addition to an existing 2007 Measure J $313 parcel tax, with 3% annual increases. This would be a new total of at least $508.

These residents additionally pay $301 to the Acalanes Union High School District. Their total parcel taxes would then total $809.

Davis Joint Unified School District (DJUSD)

DJUSD placed an emergency $200 parcel tax on a vote-by-mail May 3, 2011 ballot. This two year parcel tax will be in addition to two existing parcel taxes Measures Q and W for a three parcel tax total of $520. An earlier proposal for an additional $175 tax was designed to generate "...enough revenue to equal the funds raised last spring by the nonprofit Davis Schools Foundation, plus the amount of budget savings realized by reductions agreed to by district employees." More Davis parcel tax history here.

Opposition to the Davis parcel tax has articulated provisions for greater fiscal accountability. Previous opposition to Measure W points out the ever increasing taxes and their amounts.

Los Altos School District (LASD)

LASD has placed a $193 parcel tax on a vote-by-mail May 3, 2011 ballot. This six year parcel tax is in addition to an existing $597 parcel tax for a total of $790. Local comments here and here.

Cupertino Union School District (CUSD)

CUSD has placed a $125 parcel tax on a vote-by-mail May 3, 2011 ballot. This six year parcel tax is in addition to an existing $125 six year parcel tax for a total of $250. Survey analysis is a good read.

Ravenswood City School District (RCSD)

RCSD has placed a $98 parcel tax on a vote-by-mail May 3, 2011 ballot. This seven year parcel tax is in addition to an existing $98 parcel tax for a total of $196. The surprising twist to this measure is that it extends the existing $98 parcel tax for another four years so that both taxes would be in place through 2018. Not only will this election add a new tax, but further extends an existing one.

Jerry Brown's Budget and its Effect on K-12 Education

2011-01-17T20:14:00.001-08:00

It's been a week since Governor Jerry Brown released his proposed budget for California. For analysis on the effect on K-12 education see the Association of California School Administrators, School Services of California, and the Silicon Valley Education Foundation. For the next several weeks, this post will be updated with new analysis as it becomes available.

The big question is whether CA voters will extend the temporary tax increases imposed in 2009. Voters already said 'no' to the additional two year extension proposal in 2009, and it is not certain by any means voters want a five year extension.

Governor Brown declines to say what additional cuts to the budget would occur if the $9 billion in annual tax revenues are not approved. Estimates for the impact to Education range from $2 to $4 billion. This political posturing immediately enjoins public education unions and organizations to carry Jerry Brown's water for the June special election. SacBee columnist Dan Walters calls the California Teacher's Association "The elephant in the budget room."

Locally, PUSD reports the CA budget proposal maintains this year's funding (removing the fear of a mid-year cut) and extends categorical and CSR flexibilities for two more years giving PUSD additional options for expense control. If the attempt to raise/extend the state taxes in June fails, Assistant Superintendent Luz Cazares roughly estimates the impact to be $5.6 million. PUSD has many unused options/tools available to continue to control and reduce expenses.

Not surprisingly, teachers union president Trevor Knaggs ended his remarks at the January 11th PUSD school board meeting with a plea for everyone to vote for the state tax increases.

Governor Brown, CTA and the CA Board of Education

2011-01-08T14:36:00.000-08:00

Governor Brown's appointees to the CA Board of Education are being viewed as influenced by the teachers unions according to this LATimes article :

"CTA president David Sanchez said the union was thrilled by the new appointees because he believed the board had been stacked with too many members connected to charters, which are mostly nonunion.

He said that although there was no quid pro quo, "we did work our butts off with getting the word out" about Brown's candidacy, adding that he had told Brown of his concerns about the board numerous times. Sanchez also said that if Brown proposes June ballot measures to help fund schools, "we're going to invest time and money in it."

Critics say the string of appointees was more than payback for the union's support during the election, it was an effort to keep them and their coffers in Brown's corner. "

Here Come the Carrots and the Sticks

2011-01-06T20:00:00.000-08:00

The astute political observer watches how debates are framed. Governor Brown insiders are explaining how he will use the threat of "drastic cuts" to education to "galvanize powerful education support for tax hikes in a June special election."

California Schools Chief Tom Torlakson has "declared a state of financial emergency" in the schools while admitting his options for addressing this problem are limited. He urges Californians to support "an extension of current tax levels now set to expire, to prevent another round of devastating cuts to schools."

Framing a debate ignores other options including the concept of "permanent reset." Dan Walters says:

"Brown's greatest barrier may be his fellow Democrats in the Legislature, who have very close political ties to the groups - such as public employee unions - that would be most opposed to any deep spending cuts, especially if it meant a permanent reset. They will want temporary cuts at most, hoping that an eventual uptick in the economy would close the income-outgo gap. But unless the spending cuts are credible, it will be very difficult, perhaps impossible, to persuade voters to raise taxes..."

Talking points and political rhetoric flow freely in the education circle. As PUSD prepares the school board to approve a parcel tax election, how many carrots and sticks will be used at the local level?

Or, just maybe, PUSD might explore the complete range of serious fiscal solutions, "permanent resets" and other options to gain credibility with the voters.

Why We Exist...

2010-12-18T10:09:00.000-08:00

...to inform and educate the Pleasanton Community.

Trustee Grant said (YouTube video (1:13)) at the 12/14/10 PUSD School Board meeting, salary increases due to Step and Column are "misperceived as increases" and that it is "simply our educators continuing their education." After minimizing the annual $1.6 million expense increase he concludes by declaring "make no mistake about it."

It is Trustee Grant that makes mistakes. And big ones, too.

An introduction to Credentialed Step and Column is here. Step is for annual longevity increases and Column increases are for attaining education levels. Classified and Management employees have salary grids that are step-only (longevity).

Trustee Grant should breakout how much of the annual $1.6M Step and Column salary increases are due to education (moving across the column) and how much are due to annual longevity (step movement). Want to bet salary increases due to longevity far exceed those due to education?

Trustee Grant ignores the accumulative reality of salary increases. Grant attempts to compare permanent and ever accumulating increases in salary expense to one-time temporary expense reductions, akin to comparing apples to oranges. This ongoing increase in the permanent cost structure is one reason why the salary and benefit cost line in the multi-year projections continues to grow even though the number of employees continues to fall and enrollment grows at 0.3 percent.

Trustee Grant is an intelligent person. It is unlikely these comments were due to ignorance or a lapse in rational thought. After years as President of the Board of Trustees and participating in union contract negotiations and a prior parcel tax vote, it is inconceivable that Trustee Grant does not understand what a Step and Column salary grid is, or the components of the PUSD cost structure.

Were these comments intended to mislead the voters, placate the unions, or ramp up a dis-information campaign for the parcel tax?

And that is why we exist.

To inform and educate the Pleasanton Community.

Make no mistake about it.

2011 Parcel Tax Update

2010-12-17T11:04:00.000-08:00

PUSD Superintendent Ahmadi provided a parcel tax update at the 12/14/10 PUSD School Board meeting (YouTube video (1:28)). The plan is for a PUSD Board vote on a parcel tax at a special board meeting budget workshop on Feb 1, 2011.

PUSD Parcel Tax Survey Report

2010-11-06T06:15:00.000-07:00

Link to PUSD Parcel Tax Survey (extracted, rotated and compressed from the 11/09/10 PUSD Board packet file).