Correction: A previously posted version of this story contained incorrect information about the deficit amount and teacher raises.
After much debate over how to manage programs for vulnerable students, the West Contra Costa Unified School District board recently approved its 2024-25 budget two months late, tapping its reserves to cover an estimated $23 million deficit over the next two years.
The budget was passed late because school board members, parents and district staff weren’t aligned about the district’s plan to serve its most at-risk students, such as foster children, low-income children and English learners. But after district staff made revisions over the summer, an updated version of the Local Control and Accountability Plan (LCAP) was approved unanimously on Aug. 28. The LCAP outlines how WCCUSD will allocate $64.8 million in funding for 2024-25, primarily for its high-needs students.
The board then voted 4-1 (with trustee Mister Phillips casting the sole “no” vote) to approve the district’s $509 million budget for the 2024-25 school year. (Phillips represents Area 3, which includes neighborhoods in San Pablo and Central and North Richmond. His seat is up for election.)
At a public hearing held in late August to discuss the LCAP and the proposed 2024-25 budget, district staff reported that the district’s total projected revenue is $484 million. Of that total, $337.5 million comes from Local Control Funding, with $91.6 million from other state funds, $23.5 million in local funds and $31 million in federal funds.
District staff reported to the board trustees that California has a projected $27.6 billion deficit over the next two years, and that the district’s 2024-25 General Fund projects a total structural deficit of $11.5 million for 2024-25, to be covered by district reserves. The staff report says that the district has the funds it needs to operate for two years but is working on solutions to address the structural deficit in the long term.
“The Board of Trustees has also approved a fiscal solvency plan to improve our continued ability to meet our ongoing financial obligations,” staff said in the budget report. “Administration is confident that the district will be able to maintain prudent operating reserves, and have the necessary cash in order to ensure that the district remains fiscally solvent.”
District tapping reserves to balance its budget
Addressing the 2024-25 budget, district Interim Associate Superintendent and Chief Business Officer Kim Moses told the trustees on Aug. 28 the district is relying on its reserves to meet all financial obligations. But she said that the budget will meet all immediate operating needs for the next two years.
Trustee Leslie Reckler asked the budget committee to explore ways to adjust the budget for the coming year. She suggested that the board hold town halls to help the public get answers to questions about the finances.
Trustee Demetrio Gonzalez-Hoy said that he would support the budget despite the deficit. He said that the district is working hard to avoid closing schools and firing teachers.
“It’s not that we don’t have a will,” he said. “It’s about feeding students and having lights.”
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It’s not that we don’t have a will. It’s about feeding students and having lights.”
— WCCUSD board member Demetrio Gonzalez-Hoy
According to EdSource, the district has “slashed millions” from its budgets in recent years, eliminating 200 positions as of March, to reduce structural deficits. California’s Fiscal Crisis and Management Assistance Team, assigned to help school districts solve and prevent fiscal challenges, said in March that officials overspent, and the school board had been unable or unwilling to make necessary cuts.
Moses told Richmondside that while layoffs took place, some staffers were reassigned to vacant positions to reduce the total number of layoffs. While the district does not plan to give any raises to teachers this year, she said all district staff received one-time bonuses on Aug. 30.
LCAP process leaves parents troubled
Parents told the board at a hearing in late August that for two months, they weren’t given access to all financial documents related to the local accountability plan and said they hadn’t been adequately engaged in its development, which is a state educational code requirement.
Parent and committee member Johana Gurdian told the board: “I want to ensure that these high-needs students are prioritized, and that LCAP funds aren’t just being used to back staffing and future salaries.”
District staff spent the summer revising the LCAP per board and committee criticisms, and said they gave parents all of the documents required under state law. Secondary Schools director and former De Anza High principal Summerlynn Sigler told trustees that staff worked hard to ensure that the LCAP and budget meet state requirements to diligently manage funds for critical programs.
Some LCAP findings recognize ongoing issues in Richmond schools, such as declining enrollment (which negatively impacts the budget) and increasing suspension rates.
District staff also said that work is underway to give teachers more time to closely work with struggling pupils. Superintendent Chris Hurst said that the district now has a research and data manager to improve how program outcomes are reported and archived.
Gonzalez-Hoy moved to approve the LCAP, with caveats to require the board to work closely with the DLCAP committee to improve transparency and regain parents’ trust. District staff must provide several reports to the board about progress to improve “equity gaps” for at-risk students, he said.
Phillips said that the historic votes against the LCAP in June, including his, were correct since the new plan is a stronger one.
“I don’t believe we’d have this document if the board had passed this the first time around,” Phillips said. “Sometimes it may not be pretty, it may not be the way we want it to be. But it’s necessary, to get things right.”
Gonzalez-Hoy disagreed, saying that the rejection of the plan put the district at risk of a state takeover. Rejection of the LCAP meant the board missed California’s July 1 deadline to approve the 2024-25 budget, and for two months the district couldn’t use funds for certain programs to support vulnerable student populations.
Board Chair Jamela Smith-Folds, the only trustee who voted in favor of passing the LCAP in June, said that the votes against the LCAP were both dangerous and courageous.
“It is a sad moment (knowing) that the community doesn’t trust that, but it’s an understandable one,” Smith-Folds said. “The hurt the community has had because of promises broken has to be acknowledged, but we also don’t have to carry the burden of other people’s sins.”
