By Lookout Staff
January 28 – Top City and School Board officials on Tuesday began renegotiating an agreement that pumps some $7.5 million a year in City funding to the cash-strapped school system in exchange for public use of school facilities.
The negotiations come as an agreement ratified by the City Council in May 2004 is set to expire. They also come at a time when local schools could face as much as a $10 million deficit over the next 18 months under a proposal to balance the State budget.
“I am pleased that we are working together to determine what adjustments may be possible during this unprecedented economic downturn to best achieve our mutual goal of providing an outstanding education to Santa Monica’s children,” said Mayor Ken Genser, during a joint announcement Tuesday.
“As always, the District and City are looking to place the children first in our efforts to provide the resources necessary to ensure quality education in our community,” said School Board President Ralph Mechur.
The Master Facilities Adjustment Conference between the two parties “will assess the community use of the District premises and the fiscal status of the two organizations,” City and District officials said.
The parties also will discuss whether to recommend extending the Agreement for an additional three years, officials said.
The parties plan to have recommendations before the City Council and School in March.
The negotiations come less than two weeks after the council -- satisfied the District had made significant strides in revamping its special education policies -- unanimously voted to release $840,000 in additional funding it had held back for nearly two years.
The council expects the negotiations launched Tuesday will provide a major incentive for the district would continue to overhaul a special education program that has been the target of parent protests for years.
The current negotiations come five years after the council voted in May 2004 to give the cash-strapped School District between $6 million and $8 million a year over the next five years in exchange for allowing the City and the community to use school facilities to meet growing recreational needs.
The vote averted a potentially divisive ballot initiative sponsored by the Community for Excellent Public Schools (CEPS) that pressured the council to come up with a last-ditch compromise agreement after the group gathered the necessary signatures to qualify the charter amendment on the November ballot.
In previous years, the City had voluntarily given the district between $3 million and $5.25 million a year.
The current agreement has a number of safeguards, including requiring the District to report annual outcomes and the value derived by both agencies, post the district’s budget online and at local libraries and schools, and establish a financial oversight committee made up of fiscal experts.
The current agreement called for a cost of living adjustment of between 2 and 4 percent a year and additional increases of as much as $1 million in 2007/2008 depending on the fiscal health at the City’s “Big Eight” revenue streams, comprised of taxes and fines.
In 2004, District officials anticipated that, if extended, the agreement could further boost the amount the district receives to between $10 to $12 million a year after ten years.
Participants in the current conference include the City Manager, Deputy City Manager, the Superintendent of Schools, finance officers of the City and the District, the Mayor and the School Board President.
