Unification Feasibility Study

1
Unification Feasibility Study

• Coarsegold Union School District (CUSD) and
  Yosemite Joint Union High School District
  (YJUHSD)
• Petition to unify to be executed by majority vote
  of both governing boards is being contemplated
• If approved, the petition starts a process that,
  if State approved, would result in a local
  election
• In the meantime, there is a 2-3 year process of
  review by the county and state to ensure the
  proposal is educationally and fiscally sound
• Nigro Nigro White, LLP (NNW) was engaged to
  assist the governing boards in making an informed
  decision by conducting a feasibility study

2
Study Background

• CUSD serves 1,037 pupils grade K-8
• YJUHSD serves 1,358 pupils grade 9-12 from 3
  feeder elementary schools
• The proposed unified school district would serve
  approximately 2,395 pupils in grades K-12
• As permitted by EC 35542(b), Bass Lake and
  Raymond-Knowles would remain independent K-8
  school districts
• A resolution must be passed by Bass Lake and
  Raymond-Knowles in order to remain independent

3
Study Scope and Methodology

• NNW evaluated whether the States Nine Criteria
  for unification are substantially met and
  computed the estimated revenue limit for the
  proposed unified district
• NNW toured the study area, interviewed districts
  staff, gather districts data and attended a joint
  governing board meeting
• Statewide published statistical measurements
  were used in the educational, facilities and
  fiscal analyses

4
Evaluation of the States Nine Criteria

• The States nine criteria all were readily and
  substantially met
• District size greater than 1,500 pupils
• Community identity
• Equitable division of property, funds and
  obligations
• Not promote racial/ethnic discrimination/segregati
  on
• No significant increased costs to the State
• Not disrupt educational programs and continue to
  promote a sound educational program
• No significant increase in school housing costs
• Not designed to increase property values
• No substantial negative fiscal effects on either
  district

5
Additional Questions Addressed

• In addition to the States criteria, there were
  questions of local interest that NNW has
  researched and included in the study.
• How much new money should the unified district
  receive from the State?
• How much of the new money might be spent on
  leveling up salary and benefit schedule?
• Will there be any money left over for program
  expansion?
• Will necessary small school funding eligibility
  be lost?
• Will administrative efficiencies be achieved and
  could this result in staff layoffs?
• How would a Chawanakee High School affect the
  proposed unified school district?
• Will Coarsegolds bonded indebtedness affect Bass
  Lake or Raymond-Knowles?
• How might the new unified governing board be
  elected and organized?

6
How much new money should the unified
district receive from the State?

• EC 35735 specifies how the newly unified school
  districts State funded revenue limit is to be
  computed
• The computation is based using actual salary,
  benefit and FTE data from the 2nd prior fiscal
  year from the effective unification date (e.g.,
  2003-04 for a July 1, 2005 unification date)
• But the data is readily estimatible and is not
  expected to materially change
• There are two parts to the computation
• Blending of the two districts revenue limit,
  this is revenue neutral
• New money from the districts average difference
  in salaries and benefits

7
How much new money should the unified
district receive from the State?

• The first part of the calculation yields 5,052
  per ADA and is revenue neutral
• The second part, the new money, yields 505 per
  ADA (or 1.1 million using current data)
• The total unified revenue limit is estimated at
  5,557 and is on-going
• Compared to the statewide average for a unified
  school district, 4,753, the Yosemite-Coarsegold
  proposal yields 804 more per ADA

8
How much of the new money might be spent on
leveling up salary and benefit schedule?

• There is no requirement to spend any but common
  salary and benefits schedules must be negotiated
  by the new unified governing board and each
  employee group
• Often pay is negotiated up to the best of both
  schedules to promote equity and maintain employee
  morale
• If unified today, NNW estimates YJUHSD
  certificated staff compensation would increase
  45,000 and all CUSD groups would increase by a
  total of 364,000

9
Will there be any money left over for program
expansion?

• Yes. An estimated 691,000 would remain that
  could be used for any purpose. For example
• Reducing class sizes
• Hiring program specialist (e.g., reading)
• Expanding pupil services (e.g., nurses,
  psychologists)
• Differentiated programs for gifted, special need
  and at-risk youths
• Improved grounds, maintenance and custodial
  services

10
Will necessary small school funding eligibility
be lost?

• Yes, if the unified school districts ADA exceeds
  2,500
• Enrollment projections show the unified district
  is not expected to reach 2,501 ADA until 2008-09
  (at the earliest)
• The net loss is estimated at 378,000 and would
  occur several years after unification
• Even with the loss, the unified school district
  would still have a net fiscal positive after
  leveling up salaries and benefits of over 300,000

11
Will administrative efficiencies be achieved and
could this result in staff layoffs?

• Administrative efficiencies would be achieved due
  to the reduction of duplicative reports and
  processes
• Staff layoffs are highly unlikely for three
  reasons
• Enrollment is expected to increase annually
• Classified staff have a two-year right to
  employment and cannot be laid off during this
  period
• The two districts today are administratively
  lean, 15 administrator FTEs compared to 26 FTEs
  among comparative districts

12
How would a Chawanakee High School affect the
proposed unified school district?

• Transfer of pupils from Yosemite High School to
  the proposed Chawanakee High School would
  actually be economically beneficial to the
  proposed unified school district
• A fiscal positive from the revenue limit results,
  estimated at 100,000
• Loss of necessary small school funding is
  postponed
• Transportation savings are possible
• It is uncertain when and if Chawanakee High
  School is to be built, the school district does
  not currently have eligibility for State funding
  and would have to raise taxes to fund construction

13
Will Coarsegolds bonded indebtedness affect Bass
Lake or Raymond-Knowles?

• No. The California Department of Education and
  the Districts legal counsel have asserted that
  no reapportionment of debt would occur due to
  unification
• In other words, the Coarsegold residents would
  continue to pay for the bonds the same as today
• Future bond measures for the unified district
  would need to specify the purpose of the bonds,
  elementary versus high school, in order to match
  the voting and tax areas to where the bonds are
  to be used
• As such, Bass Lake and Raymond-Knowles would not
  be taxed without the benefit of using the funds

14
How might the new unified governing board be
elected and organized?

• The Education Code permits a 5 or 7 member board
  elected at-large or through trustee areas
• Currently both district use trustee areas to
  nominate candidates with the election held
  at-large
• There are pros and cons about the use of trustee
  areas, past history may help guide the decision
• The decision on board composition and method of
  election can be made (and changed) at any time
• If not specified before the unification, a 5
  member board elected at-large would be
  established (subject to change at any time)
• Current board members may run for the new unified
  board

15
Recommendation tothe Governing Boards

• All of the States Nine Criteria for
  unification are substantially met and there are
  many benefits that would result from unification
• Substantial financial benefits
• Higher salaries and benefits for many employees
• Added funds for educational program expansion
• Administrative efficiencies
• Bass Lake and Raymond-Knowles would remain
  independent
• There is no prohibition on subsequent unification
  actions
• Recommended Next Step
• Initiation of a petition to unify