Negotiations

Why does the state of California provide COLA funds?

• The state of California provides a COLA to School Districts that increases revenue in order to maintain current services, and is used for, but not limited to:
  • Employee Health & Welfare
  • Employee Retirement
  • Salary Schedule Increases
  • Facilities Maintenance
  • Equipment Costs & Maintenance
  • Energy Costs
  • Student Education Programs
  • Student Health & Wellness Programs
  • Transportation Services
  • Student Materials
  • Liabilities
• https://www.cde.ca.gov/fg/aa/pa/lcffcola.asp
• https://drive.google.com/drive/folders/1ZDaLZ7jAP3FjRVY6YtsMM2-SqMpk8GGF
• https://drive.google.com/drive/folders/1pnePJldMmml0kXEWU1CexzuIgzyNoWYX

Do administrators receive higher raises than certificated and classified staff?

• Site and district administrators typically receive the same raises as staff but may receive less.
• Administrators do receive steps from years of service, just like staff, but have fewer steps available to them.  While a teacher can receive annual step increases for 12 years and then steps every three years through their 30th year of service, certificated administrators only have five (5) steps on their salary schedule.

What are the ways that staff receive an increase in compensation?

• Years of service
  • Each year an employee is with the district, they may move up the salary schedule and receive an increase in compensation, depending on the step they currently occupy on the schedule.   A step increase amounts to a 2%-4% increase in compensation, depending on your position on the scale.
  • Certificated Salary Schedules 
  • Classified Salary Schedules
• Union Negotiated increases
  • Salary Schedule  - Click here to see negotiation documents
  • Increased Health and Welfare contributions
  • Days added to the work calendar
• Stipends
• Hourly pay for additional work

How much can an employee's compensation increase in total for years of service worked?

• Classified Admin positions receive up to a 26% increase in compensation over 9 years for years of service.
• Classified staff positions receive up to a 26% increase in compensation over 9 years for years of service.
• Certificated Admin positions receive up to a 10% increase in compensation over 5 years for years of service
• Certificated Teaching positions receive up to a 61% increase in compensation over the first 12 years, and a total of 86% increase in compensation over 30 years of service
  • Must meet education requirements to progress to the end of the Salary Schedule. See the certificated salary schedule.

How much of DNUSD’s total revenue is spent on salaries and benefits?

• 83% of all revenue is spent on Salaries and Benefits for employees.
• 8% of all revenue is spent on student services, programs, and service contracts.
• 3% was for the cafeteria fund, child development fund, and deferred maintenance funds.
• Only 6% of all district revenue is available to be spent on materials and supplies for the district and schools.
• https://delnorte.agendaonline.net/public/Meeting/Attachments/DisplayAttachment.aspx?AttachmentID=1125979&IsArchive=0

How large is the DNUSD fund reserve?

• 11.9% of annual expenditures - equaling $5,818,955.
• Last year at the end of the 18-19 school year, the ending fund balance of our reserve was $6,784,137 or 13.9%. In just one year, deficit spending will bring our reserves down to 11.9%.
• By giving unsustainable raises, deficit spending will continue to worsen and reserves will continue to shrink
• https://delnorte.agendaonline.net/public/Meeting/Attachments/DisplayAttachment.aspx?AttachmentID=1125979&IsArchive=0

How large is the required reserve for school districts?

• We are legally required to maintain a 3% reserve which equates to approximately nine (9) days of payroll for all employees.
• The California Department of Education says that Del Norte Unified School District should have a 17% reserve of all expenditures.  According to CDE guidelines, DNUSD does not have sufficient reserves: https://www.cde.ca.gov/fg/ac/co/gasb54atthd.asp
• According to the California Department of Education, DNUSD should maintain a reserve of $7,754,315.

Why does DNUSD have reserves above the required 3%?

• Del Norte Unified School District is committed to maintaining a prudent level of financial resources to protect against the need to reduce service levels because of temporary revenue shortfalls or unpredicted expenditures. The State of California recommends districts have a Minimum Fund Balance Policy that requires a Reserve for Economic Uncertainties, consisting of unassigned amounts, equal to no less than two months of general fund operating expenditures, or 17 percent of General Fund expenditures and other financing uses. https://www.cde.ca.gov/fg/ac/co/gasb54atthd.asp
• We are currently below the target amount of reserve recommended by CDE.

Why do we have reserves?

• Reserves are meant for one-time emergency costs in times of uncertainty and should not be used to fund ongoing yearly expenses.
• The district cannot legally access all options for reducing expenditures in the event of midyear budget cuts or deferrals from the state.  Reserves allow expenditures to be paid until the district can downsize staff, cancel contracted services, eliminate programs, reduce transportation, etc. in the event of a budget crisis. 
• Reserves allow continued operations and time for the board to make revisions and/or cuts to the budget in a thoughtful and planned manner.
• https://www.cde.ca.gov/fg/ac/co/gasb54atthd.asp

Have more questions? Email: Webmasters@dnusd.org

And we will add it to the FAQ