Blogs - by Date

Blogs - by Issue

Video Library





Blog of San Diego
Independent, in-depth, document-based analysis
Pat's Podcast The most fundamental civil right is the right to Honest Government.

Issues Analyzed
(based on source documents)

Newsmaker  Interviews
By Issue
By Date
To buy a Bank Owned property

"The Paperless Way"
(We do it the paperless way)
Bank Owned - Metro
Bank Owned - Metro Central
Bank Owned - Metro Uptown
Bank Owned - Coastal North
Bank Owned - Coastal South
Bank Owned - North County
Bank Owned - North County Inland
Bank Owned - South Bay
Bank Owned - East County
Bank Owned - Inland East
Bank Owned - Inland South

Register with
The Paperless Way"
and receive personalized email updates
for Bank Owned Properties


Law Library

  City Charter
  Municipal Code
  State Constitution
  Brown Act
  Redevelopment Law
  Coastal Act
  Density Bonus Law
  Find a California Law
  Public Records Act


  2009 - Fourth Quarter
  2009 - Third Quarter
  2009 - Second Quarter
  2009 - First Quarter
  2008 - Fourth Quarter
  2008 - Third Quarter
  2008 - Second Quarter
  2008 - First Quarter
  2007 - Fourth Quarter
  2007 - Third Quarter
  2007 - Second Quarter
  2007 - First Quarter
  2006 - Fourth Quarter
  2006 - Third Quarter
  2006 - Second Quarter
  2006 - First Quarter
  2005 - Fourth Quarter
  2005 - Third Quarter
  2005 - Second Quarter
  2005 - First Quarter
  2004 - Fourth Quarter



San Diego School District

08/25/10   The School District budget crisis - an analysis.
    by Pat Flannery                                                              top^

The San Diego School Board will meet in special session on Tuesday 5:00 P.M. August 31st to discuss this letter from the County Superintendent of Schools, Randolph Ward. The letter imposed a September 8, 2010 deadline for the District to adopt a revised budget that will be acceptable to the County Superintendent. In the meantime the District is operating at the pleasure of the Superintendent. He has the power to declare the District to be "not a going concern" at any time.

The County Superintendent has set a further deadline of October 8, 2010 when he will determine whether to finally approve or disapprove the District's amended budget for fiscal year 2010/11. The District has already identified budget reductions of $104.3 including cutting 31.5 certificated full-time employees (FTE) and 81.5 classified FTE, but that will not be enough.

In addition to further payroll and benefit cuts, he is requiring that the District "makes progress" in meeting the state minimum reserve requirements of 2%. The District's current budget for 2010/11 would have a reserve of only 0.44%. A 2% reserve would pay one week's salaries, while 0.44% would pay for one day. This is unacceptable to credit agencies and to the State.

Much has been made of the State's failure to timely pass funding legislation for Special Disabilities expenditure, but it is a diversion. It does not begin to explain the budget crisis. Even if the State quickly corrects the issue it would be a mere $9 million in the 2010/11 budget.

Here is the original 2010/11 Budget adopted by the School Board on June 29, 2010 and submitted to the County Superintendent of Schools. This graph shows the component parts of the $1.166 Billion General Fund. This shows the real cause of the crisis. I have graphed the numbers for clarity:

Salary and Benefits as a Percentage of Total General Fund

Salary and benefits are over 90% of the School District costs and growing!

There are two main types of school employees, teachers and support staff. Teachers belong to the San Diego Education Association (SDEA) and are called "Certificated" while most non-teaching staff belong to the California School Employees Association (CSEA) and are called "Classifieds".

Here is the School District's June 15, 2010  Presentation to Moody's Investment Service in connection with its Proposition S bond issue. Page 10 shows that the District has 8,027 Certificated employees and 8,020 Classified employees for a total 16,047. Page 12 shows the enrollment from 1991 to 2010. For 2010 the District has estimated 132,370 students.

Dividing the $1.166 Billion General Fund by the number of students we get $8,805 per student. Salaries and benefits is $7,930 per student with only $875 for everything else. The average salary and benefits per certificated employee is $95,680 and the average per classified employee is $35,121. There are 16.63 students per certificated employee and 16.67 students per classified employee with 8.25 students per employee overall.

As you can see, 66% of the General Fund expenditure is for members of the 8,000 SDEA, the teachers union. This core expense is at the heart of the budget crisis. This graph illustrates it very clearly. The half billion dollar SDEA salary cost is the elephant in the living room. Now look at this graph showing the recent history of the District's expenses. It shows a wild increase, mostly teacher salaries, in 2006 and 2007, at a time when enrollment numbers were actually declining.

2010 teacher salaries, the biggest component of the District's budget, must be brought back to at least 2005 levels. The 2010 enrollment numbers are actually lower than 2005. At the very least the District must reverse its 2006 and 2007 expense buildup when money was plentiful.

The School's 2006/2007 salary binge is very reminiscent of the City's 2002 pension binge. Both were the result of unions having gained control of voting bodies. Now they both want the taxpayer to bail them out. I hope these graphs and figures help people understand what is really going on. It is much more than a Special Disabilities issue that Marty Block will fix and everything will be alright.

It will be an historic School Board meeting on Tuesday 5:00 P.M. August 31st, similar to that fateful City Council meeting on November 18, 2002. Let's hope the unions and School Board do not repeat the City's disastrous pension mistake. It may be too late for the City but it is not too late for the School District. The future viability of the San Diego School District together with several political careers will be decided on Monday.

City Finances

City Pension  
Council Votes  
The Waterfront  
Mortgage Fraud  
Election Politics  

Latest Stories


Keep Government Honest.
Read source documents HERE.
Most media merely repeat
Government Spin.


To refinance your home

"The Paperless Way"
(We do it the paperless way)


I am an approved broker for all
Government Loans


Up to 105% Loan To Value!
No Mortgage Insurance!

Call me at
(619) 600-5845
or email me at pat@patflannery.com
for a free consultation.


Picking a Realtor


With over 32 years full-time experience, right here in San Diego county, there is very little I don't know about Real Estate.

I have never had a lawsuit or an ethics complaint filed against me.  I was trained in the old-school of follow "The Golden Rule".

If my Real Estate expertise can be of assistance to you or yours, please email me or call me at (619) 600-5845.


Copyright "Blog of San Diego"  November, 2004 - August, 2010