Negotiations Update

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SMEA Negotiations Update

November 16, 2021




THE NEGOTIATIONS PROCESS IS INHERENTLY CONFIDENTIAL BY NATURE.  HOWEVER, IN AN EFFORT TO IMPROVE COMMUNICATION WITH EMPLOYEES REGARDING THE NEGOTIATIONS PROCESS, THE DISTRICT HAS ADDED A SEGMENT TO THE HUMAN RESOURCES WEBPAGE TO SHARE UPDATES AS THEY OCCUR.  THE UPDATES PROVIDED WILL BE GENERAL IN NATURE AND WILL SEEK ONLY TO INFORM EMPLOYEES, NOT ATTEMPT TO INFLUENCE THEIR OPINIONS ON ANY MATTER.


The District and SMEA met on November 10th to begin the negotiations process for a new Master Contract.  Both parties “sunshined” their initial proposals at recent Governing Board Meetings in accordance with the applicable Government Code. 


Although the most recent Master Contract expired on June 30th, it is important to note that nearly all provisions of that Agreement will remain in effect during the course of the negotiations process during the 2021-2022 school year.


The District presented a detailed budget overview including that it has experienced a significant enrollment decline of approximately 1,200 students since the 2019-2020 school year that will result in an estimated loss of $17M in revenue by next school year.  The District’s estimated General Fund revenues equal $269.4M and estimated General Fund expenditures equal $270.7M for the 2021-2022 school year.  These calculations estimate that the District is projected to deficit spend an estimated $1.3M this school year.  Although required by law to maintain a minimum General Fund reserve of  3%, if the District’s pattern of deficit spending continues without adjustment it is estimated that the District would end next school year with a General Fund reserve of 2.10% and conclude the 2023-2024 school year with a General Fund reserve of -5.86%.


The District and SMEA exchanged proposals related to proposed changes to Master Contract language and discussed the potential impacts of those potential adjustments.

 

The District and SMEA have agreed to meet again on December 9th to continue the negotiations process. 
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