PALMDALE – The Palmdale School District announced Thursday that the 3.8% salary reduction and nine furlough days implemented for the 2013-14 school year will be restored.
Two major factors contributed to the District’s ability to initiate the restoration. First, the District received unexpected revenue of approximately $3.5 million related to special education costs charged to neighboring districts. Second, the District is in the final stages of “closing the books” for the 2012-2013 school year, as required each year at this time of the year. While this process will not be complete for another couple weeks, the District is confident that the unrestricted, ending fund balance will be an amount that allows for restoration of furlough days.
During negotiations, the District drafted excellent “contingency” language as part of its proposals in response to the positive outlook reflected in the Governor’s budget. This language details a formula by which any new, unrestricted revenue and/or any additional unrestricted money in the ending fund balance shall be immediately applied to reduce the percentage of salary reductions and then restore furlough days.
Therefore, the new, unrestricted $3.5 million related to special education costs and the additional unrestricted ending fund balance was factored through the formula and resulted in the restoration of all salary reductions and furlough days for the 2013-14 school years.
“The contingency language was an extremely important component of our negotiations,” commented Roger Gallizzi, District Superintendent. “Having this language provided us the opportunity to immediately utilize the new unrestricted revenue and the ending fund balance for the benefit of the entire district and community. We have made a concerted effort to reduce our spending across the district and at the school sites, which resulted in a healthy ending fund balance.”
The contingency language remains in effect throughout the 2013-2014 and 2014-2015 school years. The District is optimistic that through the use of the contingency language formula, they will have the ability to reduce salary reductions and/or restore furlough days next year as well.
Sandy Corrales-Eneix, Palmdale School District Board President stated, “Employees have been contacting me expressing their gratitude about this good news. This is a testament to the District’s commitment to working together with employees to provide our students with the best education possible while maintaining fiscal solvency.”
(Information via press release from the Palmdale School District.)
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