Reynolds school board needs to stop hiding

How the Reynolds school board hides millions, cuts local jobs & classroom resources & student programs, then hides more millions

Caveat #1: The district acts as if this is all about financials, for educators it's about much more.
Surveys of REA members show that we feel even more strongly about working conditions and learning conditions like:

• Getting enough time to plan quality instruction for students.
• Student safety issues.
• Scheduling issues.

Caveat #2: Districts should be fiscally responsible and open and lauded for it. The Reynolds school board is not honest with the public about its finances, however, and seems unclear even among its own bargaining team members what the facts are.

Waiting out the school board tantrums…

The Reynolds school board proclaims it will not deign to come to the bargaining table to talk about real issues, days (now hours) before a strike, unless we meet their arbitrary financial line in the sand. There are years of reasons to not trust their budget numbers.

Solidarity cupcakes, from the February mediation session.

Superintendent Joyce Henstrand told REA members yesterday that if a strike happens, at all, she will cancel the remaining 20 or so days of school outright for the year. Leaving principals to do the report cards? A big cost savings for the district, sure, but four weeks of putting the burden on parents and the community for student time rather than bargain with educators?

While we remain at the bargaining table, ready to talk about real issues, these dramatics by the district and school board to evade bargaining leaves us drumming our fingers waiting for them to get serious and bring solutions.

The school board's behavior and petulance has already harmed our district and community and students, and threatens to do much worse.

Why the school board's claim, with $18 million in reserves, it can also be "bankrupt" is not credible

IF YOU READ NO FURTHER — The school board needs to be asked: "Every year you set aside millions more for salaries and benefits than you pay out. Why isn't that extra money going to keep jobs? Why isn't that extra money used to keep resources in the classrooms? Why are we going into a strike with that extra money not going to help our students and teachers now?

• In the 2009-10 school year the school board increased their year-end surplus by $10,838,736 from the previous year. They did this while laying off 150 teachers.
• In 2010-11 the school board increased the budget surplus by another $2,612,614. They then laid off 70 instructional assistants who work in the classrooms.
• In the last two years, the school board has laid off 220 employees while growing its surplus of over $18 million instead of keeping local jobs and class resources.
• We've taken hits to our income and losing take-home pay compared to the cost of living during these years, while admin salaries and benefits rise.

The Reynolds school board is way above the statewide average for reserve funds (see below). Fiscal responsibility is important, but it gets to a point where such a large ending fund balance instead of investing in classrooms and student programs is unwise.

Regional Audited Expenditures Comparison

2010-11 AUDITED	ENDING FUND BALANCE	PORTION OF EXPENDITURES	STATEWIDE AVERAGE	+/- DIFFERENCE FROM STATEWIDE AVERAGE
REYNOLDS	$18,618,114	20.8%	11.0%	+9.8%
GRESHAM	$12,714,159	14.2%	11.0%	+3.2%
PARKROSE	$2,230,299	7.8%	11.0%	-3.2%
PORTLAND	$31,541,472	7.3%	11.0%	-3.7%
N. CLACKAMAS	$6,351,528	4.9%	11.0%	-6.1%
CENTENNIAL	$5,267,188	10.4%	11.0%	-0.6%
DAVID-DOUGLAS	$7,750,939	8.9%	11.0%	-2.1%
AVERAGE		10.6%		-3.86

More questions for the school board and budget committee:

ADMINISTRATOR SALARIES

• In 2008-09 the District general fund budget stated $3,682,306 would be spent on administrator salaries.  The district actually spent 3,784,045 on administrator salaries.  The district spent $101,739 more on administrators than budgeted.
• In 2009-10 the District budgeted 3,162,630 but actually spent 3,364,592 on administrator salaries.  This is a difference of $201,962.
• In 2010-11 the District budgeted $3,327,495, but actually spent $3,623,592 on administrator salaries.  This is a difference of $296,097.

This means that since the start of the recession the District has spent $600,000 more on administrator salaries than it has budgeted.


Question: “What will the district budget be for administrator salaries next year, and who is going to make sure that the District does not continue to spend more than it budgets?"

According to audited data from 2001-02 to 2010-11, Gresham-Barlow, Portland, David Douglas, Centennial, Parkrose, and the North Clackamas Districts all decreased the percentage of their general fund expenditures that went to administrator salaries.  Reynolds is the only district in that group that actually increased our percentage for administrator salaries.  In 2001-02, 3.6% of the general fund budget went to administrator salaries.  In 2010-11, 4.1% went to administrator salaries.

Question: “What percentage of our general fund budget will go to administrator salaries for next year? Will Reynolds continue to be the only district in the region that increases its percentage for administrator salaries?"

HIDING BUDGETED FUNDS
According to audited data for the past five years ending in 2010-11, the school board annually budgets far more money for PERS and health insurance benefits than it actually spends.

• For the last five years, the school board has not spent an average of $914,582 annually on PERS costs that it had budgeted. Where does that $4.5 million go?
• Additionally, the District has not spent an average of $834,613 on health insurance benefits that it has stated it would spend.
• This is a combined average of $1,749,195 per year for the last five years in overestimated expenditures.  Where does that $8.746 million go?

Question: “Is it possible that the school board might avoid a teacher strike if it actually spent the money that it budgets on annual basis for employee costs?"

TELL THE SCHOOL BOARD TO MEET TEACHERS AT THE BARGAINING TABLE AND STAY UNTIL A CONTRACT IS DONE!

Theresa Delaney Davis (Chair) – theresa_delaney-davis@reynolds.k12.or.us 503.489.5316

Robert E. Lee – robert_lee@reynolds.k12.or.us 503.969.8447

Joe Teeny – joe_teeney@reynolds.k12.or.us 503.667.6630

Tamara Schaffner – tamara_schaffner@reynolds.k12.or.us 503.805.8687

Dane Nickerson – dane_nickerson@reynolds.k12.or.us 503.255.3879