Latest News and Comment from Education

Tuesday, September 1, 2009

Budget crisis looms in teacher contract negotiations - San Jose Mercury News


Budget crisis looms in teacher contract negotiations - San Jose Mercury News:

"When teachers' union negotiators sit down with Sequoia Union High School District administrators today to begin hashing out a new contract, both sides will be thinking about the state budget.

District officials say the latest version of the state budget cut $1.9 million from schools in the new fiscal year that began June 30, on top of $2.5 million in reductions trustees already approved in June.

Union and district officials have contrasting ideas for weathering the latest round of cuts.

The district wants union leaders to agree to concessions, possibly including furlough days and an end to free health benefits, according to the district's initial proposal.
But the union's president says the district should dip into its $11 million reserve fund instead of cutting further from the district's $100 million budget. The state requires school districts to keep a 3 percent reserve.

Greg Gruszynski, president of the Sequoia District Teachers Association, said there 'probably is a need to curtail some spending,' but added that the district could 'go through this whole year without making any cuts' by relying on its reserves. Top district officials say they need to preserve an ample reserve fund to prepare for mid-year state cuts and an anticipated $3.4 million hit in the 2010-11 fiscal year."