Raises put Hollister district budget into deficit

Hollister School District trustees approved agreements with the California School Employees Association and non-represented management workers that include a raise and the promise of a lump sum bonus if state funds are healthy.
The ongoing 3 percent raise begins March 1 and sits on top of a previous negotiation settlement from the 2013-14 school year that gave staff an ongoing 2 percent raise starting with that school year and an additional 1 percent increase on top of that amount for the 2015-16 school year.
The cost of the 3 percent raise for the management and classified staff will be $116,696 annually while the total maximum cost of the lump-sum bonus payment is $329,240.The bonus will be up to 4.5 percent of salary compensation from July 1, 2014 through Feb. 28, contingent on the district receiving additional money from the state in 2015-16.
County Superintendent Krystal Lomanto issued a “cautionary” letter, warning the school district that the proposed settlements will exacerbate deficit spending. The agreements will cause the district to deficit spend about $534,904 in 2015-16 and $710,754 in 2016-17, the letter said.
Hollister Superintendent Gary McIntire was not surprised the district received the cautionary letter and explained the county superintendent was doing her job. Even with deficit spending, the district expects to have a “healthy” reserve of 8.17 percent—more than twice the state-mandated 3 percent—in 2016-17, according to the public disclosure of the collective bargaining agreement.
“Deficit spending simply means you’re spending more than you’re taking in, but you can do that if you know what you’re doing,” he said.
While an agreement has been reached with classified staff including food service workers and bus drivers, the contract with certificated staff—including teachers—is still unsettled.
“Should the district reach a similar agreement with the certificated bargaining unit, the above mentioned deficit spending amounts will exponentially increase,” according to the letter.
Restoring deep cuts the district made after the state—and the school institution— slid into financial crisis has been a multi-year process. In 2013-14, the board restored work years for most classified employees, restored a full 180-day school year for students, restored libraries, added back workdays for certificated and management staff and distributed $1 million to employees in gratitude for their sacrifices in previous years, explained Dennis Kurtz, the district’s director of human resources.
“I just want to make sure were not following down the position we were before,” said Trustee Elizabeth Martinez. “It took years to get there as well. And it’s going to take years to get out.”
In 2013-14, the district also signed a three-year compensation agreement with CSEA including $13,800 in health and welfare benefit contributions for that school year, $14,170 in 2014-15 and $14,536 in 2015-16.
“Every employee in our district is valued. Every employee matters. For me, it’s hard to look at education as a business,” said Board President Ben Flores. “To me it’s a passion. It’s something we should be willing to do at any cost.”