CalSTRS and the May Revise

Written by Ann Katzburg (Communications Committee) and Guy Moore (Retirement Committee)

CalSTRS – Why are we in this predicament?  Why is there not enough money to fully fund teacher retirements?   California State Teachers Retirement System (CalSTRS)  was at 110% of funding in 2000 which guaranteed sufficient funds  for current and future  retirees. The unfunded liability is currently somewhere to the tune of $70 billion dollars.   Since the early ‘70’s, employees have contributed 8% towards CalSTRS,  and districts have been contributing 8.25% -  16.25% of your gross pay is contributed to CalSTRS.  And it’s not enough.

The number of retirees is large … and increasing.  Baby boomers are retiring.  And add in this: teachers in California have the highest longevity of any industry group in the state.  Teachers don’t smoke; we’re educated; we eat right; we live a long time.

But the real reason for the current shortfall is the GREAT RECESSION.  It hit us hard!  Between the dot.com bust of 2001 and the 2008 world economic turmoil, CalSTRS’ diversified investments took a huge hit.  Know this.  Politically, there are many forces that would like nothing better than to see California abandon all defined benefit pensions for government employees and teachers.  Many years ago, corporate America promoted the 401(k) plan, a supplemental retirement account designed to work in conjunction with corporate defined benefit plans.  Then, corporations discovered that they would be better off getting rid of defined benefit plans completely.  When a defined benefit plan is underfunded, this is a huge liability to a corporation.  Corporate America jettisoned defined benefit plans.  Now, teachers and government employees are still covered by defined benefit plans.  Now, corporations do not look as appealing as the government or teacher professions in terms of retirement security.  Corporate America is not pleased with this state of affairs.

But teachers are.

Teachers NEED a defined benefit program to guarantee a secure retirement. It is one of the main assets provided to our profession.  Teachers do not make a lot of money, nor do we participate in Social Security. But we do contribute to our State Retirement System.  However, because of the recent decline in our economy, CalSTRS finds itself with an underfunded liability that is increasing exponentially every day.  Experts are predicting that the fund will fail in 2040 … unless we do something to fix it.

We need to save the system for retirees, future retirees, people entering the profession and the future of public education. CalSTRS and CTA have been working on solving this problem for 10 years.  We have a HUGE opportunity right now.  The governor and the state legislators are finally able and willing to tackle the situation in ways that benefit teachers and their families.  The current economic situation in California and political environment have aligned to make this the time to confront and solve this difficult issue. 

What is happening?  In the governor’s May Revised Budget Proposal, Gov. Brown has outlined a formula to tackle the unfunded liability.

The State currently contributes 3.04% to CalSTRS.  The proposed agreement is to boost this contribution to 6.3%.  CTA was astonished by this generous increase in the state’s contribution; it exceeds all expectations.

Members currently contribute 8% of their gross salary. Over time, the contribution will increase to 10.25%. 

The employer, the school district, currently contributes 8.25%.  That percentage will increase to 19.1% over the next 7 years.

The CalSTRS overhaul was the big surprise of the May Revision.  No one expected the governor to tackle this at this time.  While this was unexpected, the timing makes sense. Our state revenues continue to grow.  Gov. Brown believes that the time has come.  CTA agrees.  The highest rate of increase to districts per year over the next seven years is 1.6%.  As not every employee is a member of CalSTRS, the anticipated impact on most districts is below 1.6% per year.

This opportunity to save our pensions is essential to the survival of our profession and to public schools as we know them today.  As the budget conversation evolves with our legislators, we will be informing you of any new developments.

When we know it, you’ll know it.

Local Control and Accountability Plan (LCAP) Input from Teachers

The LCAP Input from Teachers, shared through a survey, faculty room posters is summarized below. And here are the notes of what was shared by OEA leadership with OUSD leadership. Comments are enabled in the document (you have to be signed in to Google to comment and comments are then not anonymous. Anonymous comments can be made at the end of this post by clicking on the 'comments' link.) Further details about LCAP can be found by clicking the LCAP tag at the end of this post.

LCAP INPUT FROM TEACHERS

LCAP 1 - Students have access to fully credentialed teachers, instructional materials 

that align with common core standards and safe facilities

• Need common core curricular materials.

• Need district office to underwrite cost of Columbia materials such as notebooks, easel pads,

• Need fully credentialed teachers for library and for tech.

• Fix classrooms that don’t reach Cal OSHA standards for heat and cooling.

• Assess old doors and windows for security.

LCAP 2 - Support for teachers to implement Common Core in all subject areas

• Need quality CCSS training with time for planning.

• Compensate teachers to create Common Core units/lessons/activities outside of contract

• More collaboration between schools with regard to vertical spelling alignment.

• Restoration of lost prep time at elementary.

• Utilize and compensate district teachers as staff developers.

• Need math curriculum delivered and distributed well BEFORE the start of school.

• Need IEP and 504 information accessible online like Kaiser does.

• Need alternative or supplement to Columbia Reading Program.

• Revisit and refine online resources ex. Wikis

• Enable full access to online resources such as youtube, forums, etc.

• OIS needs a library assistant/clerk

• Simplify report card process and provide release time for teachers to work on them

LCAP 3 - Community involvement and participation

• Provide parent/community information and education meetings regarding the education of

Orinda’s children, provided at convenient times, locations and methods.

• More accessibility to school board members ex. ‘office hours’ as done in Berkeley USD.

• Regular community surveys.

• Have a contact parent for under represented groups ex. minorities, ESL, LGBT, Students with

• On-going and responsive communication between School Site Council and Stakeholders

LCAP 4 - Improve student achievement by multiple measures

• Retain students who need it.

• Refine the SST process to make it more efficient and ensure that there is a cut-off point by

the end of March so there is time to begin full-assessments.

• Need clear, consistent, district-wide intervention program, especially Tier II intervention, to

support students, particularly writing in lower grades and reading in upper grades with the

goal of reducing the number of students referred to special ed.

• Provide honors math at OIS and math enrichment at all elementary schools

• Resurrect practice of teachers scoring writing in common.

LCAP 5 - Student engagement and attendance

• Allow teachers to bring in curriculum projects that individualize classrooms and emphasize

strengths and passions of teachers.

• More project based learning with student choice.

• Less emphasis on required assessments.

• Need more time and support for increased cross curricular collaboration.

• Pilot smaller learning communities (ex. vertical grouping like ‘houses’) at OIS

LCAP 6 - School climate with regard to student experience measures (suspensions,

expulsions etc.)

• Regular surveys of school community with regard to climate.

• Effective anti-bullying program at OIS ex. student-driven.

• Monitor SB48 (FAIR education act) implementation in schools.

• Bring fun and creativity into classroom by increasing autonomy of teachers to decide how to

teach to agreed goals.

NOT LCAP: School climate with regard to TEACHER experience

• Parents and administrators need to show respect for teachers ex. a communication protocol,

tone of communications and some coaching for parents on this.

• Administrators need to be more aware of workload impact of changes they propose. Decision

to add needs to be a decision and not a directive.

• Minimize phone call interruptions and early release of students from class.

• Regular faculty meetings at OIS.

• Training for teachers in how to run/participate in meetings.

• Training for teachers for how to deal effectively with difficult stakeholders.

• Administrators need mediation training.

LCAP 7 – Ensure student access to classes that prepare them for college for college

and careers

• Rather than teach to the test, engage students in the love of learning.

• More public speaking and performance opportunities for students.

LCAP 8 - Other student outcomes ex. PE, and the Arts

• Restore weekly art grades 1-5 and

• Kindergarten to participate in specialist programs (Ex. art and P.E.)

• Collaboration/Cross Articulation time for specialists and teachers.

• OT training for primary teachers.

• Integrate more arts across the curriculum.

A new era of local control at state level - read more about it:

PROVIDING A WELL-ROUNDED EDUCATION AND ALLOWING LOCAL SCHOOL COMMUNITIES TO MAKE SCHOOL FUNDING DECISIONS ARE CRITICAL TO IMPROVING STUDENT LEARNING

Call Superintendent of Public Instruction Tom Torlakson at916.319.0800, and tell him to keep fighting for local control of school funding decisions and a well-rounded education for all our kids.

A new era of local control is helping teachers, parents and community supporters design the best educational experience to meet the needs of all students in local districts. Grounded in the Local Control Funding Formula approved by the legislature, the California Department of Education and the Superintendent of Public Instruction are responsible for implementing and protecting the new law. In addition to parents and teachers working together to make all our schools stronger, a well-rounded education that includes career and technical education is equally important for California’s students. Learn more about these issues below and join CTA in asking Superintendent of Public Instruction Tom Torlakson to keep fighting for local control and to help ensure our local schools prepare all students for the jobs of tomorrow.

• Local Control Funding Formula: The largest shift in funding for California schools is designed to make sure districts serving students with the greatest needs – low-income students, English learners and foster youth – get additional resources to achieve the state’s academic standards. It’s important that the Superintendent of Public Instruction protects the intent of this law to ensure spending decisions are made by parents, teachers, principals and the local school community.
  
  
• Career Technical Education:Not all students choose to attend college after high-school graduation. That’s why a well-rounded education that focuses on science, math, and career training for students who don’t choose college is so important. Read more about the Superintendent’s Career Readiness Campaign and encourage him to keep fighting for the technical training our students need.
  
  
• Improving Lower-Performing Schools: CTA has been leading the charge to help schools serving our most at-risk students. TheQuality Education Investment Act is providing additional resources and bringing proven education reforms to nearly 500 of California’s lowest performing schools. It’s important that these reform ideas become part of the funding decisions by local school districts as these changes have increased student learning across the state. To learn more about how the lessons from QEIA can help other schools, read two recent reports, “Cultivating Change in Schools” and “Pathways to Change.”
  
  
• Learning over Testing: In addition to implementing a new school funding plan, California schools are also implementing the Common Core State Standards to move beyond the No Child Left Behind Act, which created a system of winners and losers based on test scores. CTA supported Assembly Bill 484 to ensure that California students didn’t take outdated state tests this year and to help set up a common sense implementation of the new standards before moving to high-stakes assessements.     

Call Superintendent of Public Instruction Tom Torlakson at916.319.0800, and tell him to keep fighting for local control of school funding decisions and a well-rounded education for all our kids.

LCFF and LCAP, what does it mean for OUSD?

The increase in state funding for OUSD this year due to the increase in LCFF dollars (Local Control Funding Formula) is over $1 million.

How will those funds be allocated?

The funds will be allocated according to the Goals and Priorities in the LCAP,  the Local Control Accountability Plan. School Districts are required per Ed Code #52060 to get LOCAL input from all stakeholders in developing their LCAP Goals and Priorities, and how to allocate the LCFF funds.

Ed Code 52060(g): "A governing board of a school district shall consult with teachers, principals, administrators, other school personnel, local bargaining units of the school district, parents, and pupils in developing a local control and accountability plan."

This is separate from the CCSS Implementation Funds. OUSD is receiving $499,000 in CCSS Implementation Funds (approximately $200 per student state-wide). The CCSS Implementation Funds must be used only for 3 purposes: 1) Professional Development for Common Core, 2) Instructional Materials, 3) Technology for CCSS testing (SBAC).

Overview: The LCFF and LCAP are part of the most significant change in California public school finance in the last 40 years.  The new Local Control Funding Formula (LCFF) radically changed the State K-12 funding allocation method (thus, "Funding Formula"), and greatly reduced restrictions on State funds allowing local decision making and priorities  to drive district budget development ("Local Control"). 

Under the LCFF, most State funding coming to school districts and schools will have fewer restrictions.  No longer does the State direct money for some of the specific programs that had been historically funded (i.e., textbooks, counseling, deferred maintenance, safety, etc.). The use of LCFF funds now is required to be determined by local decision making. 

  

Three excellent sources of information regarding the key aspects of the LCFF are:

1. theCalifornia Department of Education (CDE), http://www.cde.ca.gov/fg/aa/lc/lcffoverview.asp

2. theLegislative Analyst Office (LAO)

http://www.lao.ca.gov/reports/2013/edu/lcff/lcff-072913.aspx

3. WestEd who is working with the State Board of Education (SBE). 

http://lcff.wested.org/lcff-channel/episode-8-overview-of-the-local-control-and-accountability-plan/

One of the major requirements in LCFF requires all school districts to develop a Local Control Accountability Plan (LCAP) that aligns the district's financial resources with its educational goals in the LCAP. 

Eight State Priority Areas were adopted  by the SBE, that all districts must address in their LCAP: 

·       Student Achievement

·       Student Engagement

·       Common Core Standards

·       School Climate

·       Parental Involvement

·       Course Access

·       Basic Services

·       Other Student Outcomes

The LCAP requires districts to solicit input from all stakeholders in the development of its goals in the priority areas. 

The LCAP is a 3 year plan which must be approved by 7/1/14, and updated every year thereafter, and is detailed in Education Code #52060-52077:

http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=EDC&division=4.&title=2.&part=28.&chapter=6.1.&article=4.5.

§ 15497. Local Control and Accountability Plan and Annual Update Template: (SBE)

http://instruction.sbceo.org/pdf/Curriculum%20Council/Jan_2014/SBE-LCAP%20Draft%20Template-Jan%2016%20Item%2020%20Attachment%203.pdf

______________________________________________________________________

Leg Analyst Office (LAO): An Overview of the Local Control Funding Formula, (pg 10-13 pasted in below):  http://www.lao.ca.gov/reports/2013/edu/lcff/lcff-072913.aspx

Transparency and Accountability Under New System

In addition to creating a new funding formula, the 2013–14 package of legislation establishes a set of new rules relating to school district transparency and accountability. Specifically, under the new rules, districts are required to adopt Local Control and Accountability Plans (LCAPs). Districts that do not meet the goals specified in their LCAPs and fail to improve educational outcomes are to receive assistance through a new system of support and intervention. We describe this new system in more detail below.

District Development and Adoption of LCAPs

Districts Must Set Annual Goals in Eight Specified Areas. Each LCAP must include a school district’s annual goals in each of the eight areas shown in Figure 7. These eight areas of specified state priorities are intended to encompass the key ingredients of high–quality educational programs. Figure 8 identifies how districts are to measure success in each of the eight areas, with districts required to include associated data in their LCAPs. The plans must include both district–wide goals and goals for each numerically significant student subgroup in the district. (To be numerically significant, a district must have at least 30 students in a subgroup, with the exception of foster youth, for which districts must have at least 15 students.) The student subgroups that must be addressed in the LCAPs are listed in Figure 9. (In addition to specified state priorities, districts’ LCAPs can include annual goals in self–selected areas of local priority.)

Districts Must Specify Actions They Will Take to Achieve Goals. A district’s LCAP must specify the actions the district plans to take to achieve its annual goals. The specified actions must be aligned with the school district’s adopted budget. For example, a school district could specify that it intends to provide tutors to all EL students reading below grade level to improve its EL reclassification rate. To ensure the LCAP and adopted budget were aligned, the school district would be required to include sufficient funding for EL tutors in its adopted budget plan.

Districts Must Use SBE–Adopted LCAP Template. In preparing their LCAP, districts are required to use a template developed by SBE. The template is intended to create consistency in LCAPs across the state and assist school districts in developing their plans. The SBE is required to adopt the LCAP template by March 31, 2014.

Districts Must Solicit Input From Various Stakeholders in Developing Plan. Figure 10 outlines the process a district must follow in adopting its LCAP. One of the main procedural requirements is that a district consults with its school employees, local bargaining units, parents, and students. As part of this consultation process, districts must present their proposed plans to a parent advisory committee and, in some cases, a separate EL parent advisory committee. (EL parent advisory committees are required only if ELs comprise at least 15 percent of the district’s enrollment and the district has at least 50 EL students.) The advisory committees can review and comment on the proposed plan. Districts must respond in writing to the comments of the advisory committees. Districts also are required to notify members of the public that they may submit written comments regarding the specific actions and expenditures proposed in the LCAP.

2/9/14 OUSD Trustees’ Meeting - OEA notes

YouTube video of meeting

 No public comment.

Employees of the month: Dara Slevin (certificated) and Dawn Kurisu (classified).

The Board approved the OEA request for collective bargaining.

An agreement was approved Premier Security Solutions for an alarm system at the new district office.

CA School Boards Association: Trustee Julie Rossiter placed her name for consideration as a Contra Costa County representative on the CSBA Delegate Assembly. Discussion By Trustees Butler and Krumholz re: potential delegates familiar to them and process of nominations (which were unclear or not received by them). Trustees supported three delegates including Trustee Rossiter.

Parcel Tax: Dean Burnick member of Parcel Tax Independent Citizens’ Oversight Committee. Audit showed that funds from Measure A and B are appropriately spent. The Committee recommends that the district communicate information within school communication resources and via community communication resources. Currently all members of the PTICOC are not staggered and therefore suggest that in the interest of continuity that the committee membership be staggered by 2:3. By laws will need to be modified.

Governor’s Proposed 2014-15 Budget:

5.5 billion one time and ongoing Prop 98 (to help restore); 11.4% increase however under Local Control Funding districts are diversified. OUSD expected to receive an additional $417.00 per ADA.

Under LCFF no school district will receive less than previously funded prior to LCFF

State identified cola: 0.86%

cola: 0.86% for special eduation

Supplemental grant percentage for OUSD: 1.159%

All districts will equally share any state funded provided colas

Trustee Butler asked how input is collated for $ decisions as she wants to see all stakeholders included. Unclear response. The former Fiscal Advisory Committee that included two OEA reps and two CSEA reps has been disbanded. 

The state now identifies “small class size” as 24 students.

2014-15 Calendar presented: based on Curriculum Committee input

1^st student day: Tuesday August 25, last student day: Friday June 12

Holidays aligned with AUHSD (high school starting on Monday rather Wednesday as in the past)

Friday, August 22, Monday, January 26, Monday, March 9 full day staff development

Friday, August 29 and Monday, February 27 half-day staff development

Mrs. Marshall was complimentary re: the efforts of the Curriculum Committee members and Trustee Severson expressed his gratitude as well

Portable classrooms: $115,000 per year lease; portables range in age from 5-45 years

$443,000.00 is cost to buy out leases,  $457,000.00 to replace worst portable classrooms with newer portables; $2,300,00 to replace portables with green fab buildings

8 portables considered in poorest condition

$8,000,000.00 balance remaining from Pulte funds

Board Reports:

Trustee Butler:

Advocacy Day

CSBA Training on Human Resources and Collective Bargaining

Trustee Krumholz complimented the options available to students at OIS

Dr Jaconette:

Bay Sci grant a la LHS building awareness

Trustee Butler again requested that LCFF clarity be included on the next agenda. See Ed Code on this.

Minutes respectfully submitted by,

Colleen Sullivan

OEA VP