AUSD Reserves Disseminated Among Employees
OLIVIA CHEUNG
Editor in Chief
DIANA LI
News Editor
After years of frugal practices through program and personnel cuts, the Alhambra School Board recently gave a one-time bonus totaling $9 million to all Alhambra Unified School District (AUSD) employees, teachers and administrators.
However, the Alhambra school board members are exempt from this bonus because they are considered elected officials, not employees of the district.
This bonus—equaling 10 percent of the respective staff member’s salary—was a result of AUSD’s reserve amount totaling $38 million at the end of the fiscal year.
According to the Star News, AUSD Board President Jane Anderson explained that the 10 percent is actually a two percent cost-of-living increase multiplied by the last five years.
“Because of the financial uncertainty of the state, we kept more than we needed to in our reserves for unperceived circumstances,” Anderson said. “Now that things have evened out […] we found that our funding is a lot more stable.”
Superintendent Laura Tellez-Gagliano stated that the district had reserved approximately 23 percent of the state’s allotted funding, exceeding the 15 percent they were advised to have by the district’s Assistant Superintendent of Financial Services, Denise Jaramillo.
“Reserves […] help buffer difficult times. It is very important for this district to maintain a reserve level well beyond the minimum state requirement,” Jaramillo said. “Without a solid reserve base, the District will not be able to respond to financial uncertainties that may come our way.”
The Legislative Analyst’s Office, California’s Nonpartisan Fiscal and Policy Advisor, states that California school districts are expected to have reserves of at least one to five percent, depending on the district’s size, with smaller districts having higher reserves. AUSD must have a minimum of three percent of the state’s general funding, although it can exceed that amount.
Furthermore, public school funding is currently in the process of changing.
“We are leaving a funding system that was established 40 years ago and entering into a new system called Local Control Funding Formula (LCFF) […]. A solid ending fund balance is necessary as the state adjusts to the new funding methodology,” Jaramillo said.
The pay bonus reduced AUSD’s 23 percent reserves to about 19 percent, or $29 million.
“We need to evaluate which positions or programs should be brought back,” Tellez-Gagliano said. “We have restored a health assistant at the high schools who will support the nurse. We are looking at other positions also.”
Although the district decided to fund employee bonuses, decisions are still being made in regards to funding for new materials, technology, teacher training, and personnel needs. By fall of the 2014 school year, new materials, such as textbooks, is expected by the district.
Some teachers agree that there should be money distributed toward school campuses.
“I think [money] should be allocated for district-wide improvements on campuses. There needs to be updated technology, school resources and campus beautification,” finance teacher Thomas Jelsma said.
Regardless of where the remaining reserve money is designated, others still agree that AUSD employees, particularly teachers, deserve monetary compensation.
“The teachers do a lot of work [and] buy classroom supplies without reimbursement, so [the raise] should be their reward for their constant dedication,” sophomore Natalie Monterroza said.