Labor Negotiations

California has a $55 Billion "budget problem". You can read more about California’s budget challenges and how the state is planning to address the shortfall in the current budget years (2022-2025) and future years. Click here for more information from the independent Legislative Analysts Office (LAO).

In California, TK-12 schools are primarily funded through a combination of state, local, and federal sources, with a vast majority of revenue coming from the State. The State's funding mechanism for TK-12 education involves a complex formula known as Proposition 98 and the Local Control Funding Formula (LCFF), which was implemented in 2013.

School District funding is allocated based on average daily attendance (ADA), with additional funds (called supplemental & concentration grants) provided for students who have greater needs, such as English language learners, foster youth, and students from low-income families. To learn more about the LCFF, click HERE and HERE.

Because TK-12 schools represent 40% of the state budget, when California faces a budget deficit, it means that there is a shortfall between the State's projected spending and its revenue. This shortfall means the State would need to take steps to balance the budget, which could include cuts, deferrals (delays), or other adjustments to education spending.

In California, school districts are primarily funded through the Local Control Funding Formula (LCFF) and Proposition 98. The LCFF allocates funding to schools based on the number of students they serve and provides extra resources via Supplemental and Concentration Grants for students with greater needs, such as English learners, low-income students, and foster youth.

The LCFF is largely based on Average Daily Attendance (ADA), which is the total days of student attendance divided by the total days of instruction. When enrollment goes down, ADA declines, and thus district revenues decline as they receive less funding from California. 

For an overview of district funding in California, please click HERE. For a more comprehensive explanation of School Funding and Accountability in California, School Services of California publishes a book on the topic, which can be purchased HERE. 

Like most schools in California and Los Angeles County, CVUHSD enrollment has steadily declined. Since 2019-20, CVUHSD has seen enrollment drop by ~800 students (12%). It is projected that this rate of decline will continue through 2030 for much of California. For more information about California’s TK-12 enrollment decline, click HERE. 

Additionally, Average Daily Attendance (ADA) levels have not returned to pre-pandemic levels of around 96%. At CVUHSD, ADA is about 91% which is in line with the current statewide average. Because school districts in California are funded based on ADA, each student represents approximately ~$16,000 in potential revenue and each absence (excused and unexcused) represents a loss of about $90.

The majority (80%-85%) of any school district’s budget is staffing expenditures, which includes salaries, pension contributions, health benefits, and all other statutory benefits (e.g. social security, workers’ compensation, unemployment insurance, etc.).

If the state is able to fund it, California provides a COLA that is applied to the ADA per-student grant in the Local Control Funding Formula (LCFF). In the current budget year, due to the “formula” part of the LCFF, and because CVUHSD has been declining in enrollment and ADA, the district received a much smaller year-over-year increase in revenue, which is known as "Funded COLA".

Beginning in 2024-25, because of lower state COLAs and pandemic-era ADA falling out of the three-year ADA averages, the District is projecting negative funded COLAs. That is, state COLAs will be insufficient to make up for ADA declines and thus revenue is in decline.

Ending fund balances serve as a snapshot of a school district's financial health at the end of a fiscal year and represent the accumulation of surplus or the impact of deficit (negative) spending over time. Fund balance is not excess unrestricted “cash”, as it also includes carryover resources, such as supplemental and concentration grants and other special funding (Lottery, parcel tax, et al.). A portion of the ending fund balance is set aside as reserves for economic uncertainty. 

Total compensation is the complete package of benefits an employee receives from their employer, which goes beyond just the salary. It includes direct payment like wages, as well as other benefits such as health insurance, pension contributions, and other statutory benefits (e.g. social security, unemployment insurance, etc.). 

Pension Contributions: As required by the state pension system, CVUHSD contributes 19.10% for certificated staff and 26.68% for classified staff. The percentages reflect the amount of each employee’s salary that the District pays on behalf of that employee.

Health Benefits: CVUHSD has invested in increasing its health benefits cap to help cover the rising cost of healthcare. The cap has increased by $1,500 on January 1 2023, January 1 2024, and January 1 2025 - totaling $22,500. In addition, CVUHSD provides reimbursement for gym memberships (up to $50/month).

Statutory Benefits: Other benefit contributions included in total compensation are: Social Security, Medicare, unemployment insurance, and workers' compensation coverage.