Thoughts on the USCSD Budget

I just read through Dr. O’Toole’s letter to taxpayers, titled “Budget Briefing from Superintendent” and there are a few things that I have questions about.   Using some of the categorization he used in his letter, here are my thoughts, concerns and questions.

Pension Costs – This is the 300 pound gorilla sitting in the room.  It is a shame so little thought was given to the sustainability of the pension decisions made in past years.  But those are promises made that must not be broken.  In future pension negotiations (and this may be a state level issue, I don’t know) I would advocate for replacing pensions with 401(k) style retirement savings matching.  It is time the public sector catches up with the private sector on employee retirement offerings.

Debt Restructuring – Debt makes sense for a private organization that can reap tax advantages and generate revenue in excess of the cost of the debt.  For a public institution, debt should be avoided for everything except large capital expenses.  That debt should be repaid, as soon as possible.  From that point of view, I wonder why the benefit of the debt restructuring wasn’t used to pay down the debt.  Sure it eases the budget pressures elsewhere but this decision just prolongs the debt.

Special Education – These are our kids, too.  When an organization holds a virtual monopoly on education, it must meet the needs of all students.  Think creatively.  Find new and unique solutions.  Yes, special education is expensive.  We have to find the best way to deal with it.

Technology Enhancements – I’ve written about this before.  Investments in technology are only worthwhile if a measurable improvement can be demonstrated above similar sized investments in other areas of the classroom.  I’m still waiting to see the data proving that we need the latest gadgets.

Possible Decrease to Staffing – I would suggest a look at decreasing staffing and expenses in areas that are not the core function of the school system.  Has the Administration examined contracting non-core functions to private vendors?  Maintenance, janitorial, transportation, etc. are all areas that can benefit from the economies of scale a private provider can realize that the school system never will have.  I am willing to bet there is at least 10% to 15% savings to be found by contracting these services and eliminating the personnel and capital costs the school district.   In-classroom resources, including teachers, should be the absolute last area to cut.

Security Enhancement – First, I don’t think this is necessary.  But if you are going to do it, look to a private contractor that can spread the overhead among many clients.   It should be cheaper.

Capital Budget – There a couple items here that jump out at me.  First the iPad expenditure, although financed through private donations, still needs to demonstrate value in an objective way per my comments about technology above.  The other line item that jumps out at me is the $170,000 for Bus/Van replacement.  I haven’t seen any ratty, run down buses or vans hauling our kids around.  What determines when a vehicle needs to be replaced?  This is an expense that could be eliminated by contracting out the transportation of students to an organization that can spread the overhead among multiple clients. 

Philosophically, I believe an organization should focus on its core mission and seek savings first in the support functions.   For the USCSD, that would be administration, maintenance, transportation, food service, etc.  Let’s look harder at these non-core functions so we can spend more of our dollars and efforts on in-classroom resources.

Anyone agree with me or am I missing something?